Financial guarantors suffer ratings actions

Moody's has placed bond insurers Financial Guaranty Insurance Company and XL Capital Assurance on review for downgrade. The rating agency also affirmed the ratings of MBIA and CIFG, but changed their outlooks to negative.

The move follows Moody's reassessment of the insurers' capital adequacy in light of higher expected losses from credit enhancement provided to RMBS and CDOs of ABS.

"In the cases in which we moved to a negative outlook or have initiated a review for possible downgrade, capitalisa

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