Fitch Ratings Agency has downgraded bond insurer Financial Guaranty Insurance Co. to AA, making it the third major guarantor to lose its top rating. The other two insurers that have received downgrades to AA are MBIA and Ambac. All three insure asset-backed subprime bonds held by institutional investors, including Fannie Mae and Freddie Mac. It is unclear whether the government-sponsored enterprises -- or any other investors that use Ambac, FGIC, and MBIA -- will have to write down their covered bonds because of the downgrades.

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