Assured Guaranty Corp. has requested that Moody’s no longer rate the financial strength of its bond insurance. Assured has stated that since Moody’s most recent rating in January of 2013 (A2) the rating agency has not reflected in its ratings company’s improved financial position.
With echos of 2008 when municipal bond insurance ratings were withdrawn, removing the A2 rating would result in certain municipal bonds, that are rated purely on the Moody’s rating of Assured Guaranty bond insurance to become non-rated.
Assured Guaranty has requested that Standard & Poor’s assign its insured rating of AA to bonds related to 312 issuers that are not already having an Assuered Guarantee insured rating and having an underlying rating below Aa from Moody’s or having no public underlying rating from Moody’s
