Assured Guaranty has announced that it has agreed to acquire CIFG. CIFG, the formerly triple-A rated bond insurer, fell upon hard times during the financial crisis. Essentially Assured Guaranty is acquiring CIFG’s book of business that has weathered the financial crisis.
In 2009, Assured Guaranty acquired Radian Asset Assurance. This resulted in bonds insured by Radian, again having viable bond insurance and the bonds having an insured rating (AA/A2), based on Assured Guaranty, restored. It is likely that that the rating agencies will review this acquisition and take similar rating actions for CIFG rated bonds.
