Bermuda-based financial guarantor Syncora Holdings Ltd. is set to be delisted from the New York Stock Exchange.

Syncora said in a statement released after the markets close on Friday that the NYSE will suspend trading in the company, which has been plagued by its exposure to troubled credit markets, on December 17.

Syncora, formerly known as Security Capital Assurance, breached two NYSE requirements, as its average closing stock price over a 30-day trading period was below $1.

Also its average market capitalisation of was below $75 million over the same period when its a stockholders' equity was also less than $75 million.

"Syncora does not intend to appeal the NYSE's decision at this time and, consequently, it is expected that the common stock will be delisted following the NYSE's application to the Securities and Exchange Commission," Syncora's statement said.

After delisting, the company's shares will be traded on the Financial Industry Regulatory Authority's over-the-counter bulletin board and on the "Pink Sheets".

Syncora, spun off by Bermuda insurer XL Capital in 2006, has been ravaged by losses emanating from its guarantees of collateralised debt obligations (CDOs) - securities backed by pools of assets including sub-prime mortgage debt.

In the third quarter alone, Syncora posted a loss of $1.34 billion, and admitted it had "substantial doubt" over its ability to continue as a going concern.

XL paid Syncora $1.78 billion plus eight million shares in August to rid itself of virtually all of its reinsurance exposure to the bond insurer.