Reauters
Thu Feb 14, 2008
SourceNEW YORK, Feb 14 (Reuters) - Moody's Investors Service on Thursday cut its top "AAA" ratings on FGIC Corp's bond insurance arm, citing the insurer's weakened capital position and business profile.
Moody's cut Financial Guaranty Insurance Co's "AAA" insurer financial strength rating by six notches to "A3," the seventh-highest investment grade rating. It also cut parent company FGIC Corp's senior debt rating to "Ba1," the highest junk level, from "Aa2."
FGIC is owned by a group including mortgage insurer PMI Group Inc (PMI.N: Quote, Profile, Research) and private equity firms Blackstone Group (BX.N: Quote, Profile, Research), Cypress Group, and CIVC Partners LP. The group acquired FGIC from General Electric Co (GE.N: Quote, Profile, Research) in 2003.
(Reporting by Dena Aubin, Editing by Chizu Nomiyama)
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