Moody's Downgrades Bond Insurer Affiliates

Moody's Investors Services has downgraded some insurance financial strength ratings of U.S. and United Kingdom entities with ties to bond insurers FGIC Corp. and Security Capital Assurance, citing concerns linked to their mortgage-related exposures. The downgraded IFSRs are those of FGIC's main operating subsidiaries, Financial Guaranty Insurance Co. and FGIC UK Ltd. (from Baa3 to B1), and SCA's subsidiaries XL Capital Assurance Inc., XL Capital Assurance (U.K.) Ltd., and XL Financial Assurance Ltd. (from A3 to B2). Moody's also downgraded the senior debt ratings of FGIC Corp. from B3 to Caa2 and the contingent capital securities ratings of Grand Central Capital Trusts I-IV from B2 to B3. In addition, the rating agency downgraded SCA Ltd.'s debt ratings for its preference shares from B3 to Ca. Moody's can be found online at http://www.moodys.com.