Kroll Bond Rating Agency LLC has affirmed the AA+ insurance financial strength ratings of the subsidiaries of Bermudian-based Assured Guaranty Ltd.

The rated subsidiaries are Assured Guaranty Corp, Assured Guaranty Municipal Corp, and AGM’s UK and European subsidiaries Assured Guaranty UK Limited and Assured Guaranty (Europe) SA. All the ratings have stable outlooks.

KBRA noted that the Covid-19 pandemic and other events have “led to increased awareness for the financial guaranty product.

“An economic environment of increasing interest rates and volatile or widening credit spreads may enhance the business environment for Assured as issuers seek interest expense savings or investors consider different forms of regulatory capital relief.

“Further, a tightening credit cycle which may disproportionately impact economically sensitive taxes or issuers with weaker balance sheets may further enhance investor demand for the product.”

Dominic Frederico, president and CEO of Assured Guaranty, said: “As KBRA mentioned, demand for our product has been growing over the past several years, and the Covid-19 pandemic and other uncertainty has led to broader recognition of the protection and value our guaranty provides against unforeseen circumstances.

“We are pleased with the affirmation of our AA+ (Stable Outlook) rating for AGC, AGM and AGM’s UK and European subsidiaries and believe the economic conditions for increased new business remain intact.

“We are well positioned for future growth while maintaining our prudent credit and risk management processes.”