Moody's Investors Service has upgraded the insurance financial strength (IFS) ratings of Assured Guaranty and its subsidiaries.

The upgrade reflects their improved credit profiles following the resolution of the group's exposure to the general obligation bonds issued by the Commonwealth of Puerto Rico and limited expected volatility among its remaining Puerto Rico exposures.

Additionally, demand for financial guaranty insurance continues to trend favourably, both in the United States and in Europe, which supports the continued alignment of interests between Assured Guaranty's shareholders and its policyholders and creditors.

Moody's also notes that the size of AGM's insured portfolio has stabilised after a long period of amortisation and is again growing slowly as new business replaces maturing and refunded bonds.

This growth is expected to support the firm's earnings profile going forward, particularly without the drag of loss and loss adjustment expenses incurred on defaulted Puerto Rico exposures over the past several years.

Assured Guaranty Ltd. is a holding company based in Bermuda.

Through its subsidiaries, it provides financial guaranty insurance to the US and international public finance and structured finance markets, and also provides asset management services.

As of December 31, 2021, Assured Guaranty had consolidated net par outstanding of approximately $236 billion, qualified statutory capital of $6.8 billion, and total claims paying resources of $11.2 billion.

Moody's Investors Service has upgraded the insurance financial strength (IFS) ratings of Assured Guaranty Municipal Corp. (AGM) and Assured Guaranty UK Limited (AGUK) to A1 from A2 and the IFS rating of Assured Guaranty Corp. (AGC) to A2 from A3.

Moody's also upgraded the debt ratings of Assured Guaranty US Holdings Inc. (AGUS) (backed senior debt to Baa1 from Baa2), the junior subordinated debt rating of Assured Guaranty Municipal Holdings Inc. (AGMH) to Baa2(hyb) from Baa3(hyb), as well as the long-term issuer rating of Assured Guaranty Ltd. (Assured Guaranty) to Baa1 from Baa2. The outlook for the ratings is stable.

These rating actions also have implications for the various transactions wrapped by AGM, AGC and AGUK as discussed later in this press release.