Assured Guaranty Ltd. (NYSE: AGO) announced that S&P Global Ratings, Kroll Bond Rating Agency (KBRA), and Moody’s Ratings have confirmed that they see no change to Assured Guaranty’s financial strength following the expected merger of Assured Guaranty Municipal Corp. (AGM) into Assured Guaranty Inc. (AG).
KBRA
In a July 8 press release, KBRA stated that upon the expected August 1, 2024, closing of the merger, the Insurance Financial Strength Ratings (IFSR) for AG, Assured Guaranty UK Limited (AGUK), and Assured Guaranty (Europe) SA (AGE) will remain unchanged at AA+ /Stable. KBRA noted that the merger simplifies the organizational structure, creating efficiencies and enhancing Assured Guaranty Ltd.’s global platform.
S&P
On July 9, S&P published a bulletin affirming that the merger will not change its assessment of the Assured Guaranty group’s business or financial risk positions. S&P’s AA (stable) insurance financial strength rating (IFSR) for AG has already considered the AGM business being assumed in the merger.
Moody’s
On July 10, Moody’s affirmed the IFSR of AGM and AG at A1 (stable). The agency also affirmed the A1 IFS rating of Assured Guaranty UK Limited, the Baa1 senior debt ratings of Assured Guaranty US Holdings Inc., the Baa2(hyb) junior subordinated debt rating of Assured Guaranty Municipal Holdings Inc., and the Baa1 long-term issuer rating of AGL.
Moody’s highlighted the group’s strong capital profile, conservative underwriting, and leading market position. Despite the planned extraction of $300 million in capital via a special dividend post-merger, Moody’s views the combined entity’s risk-adjusted capital adequacy as strengthened.
