S&P Comments on Rumored Sale of FGIC

Standard & Poor's here says it has have received numerous calls and expressions of concern regarding the possible sale of Financial Guaranty Insurance Co. by General Electric Capital Co.The ratings agency, which said it doesn't normally comment on rumors, said in a release, "we believe that several points can be made that should be reassuring with respect to FGIC's 'AAA' financial strength rating." General Electric Co. management has informed Standard & Poor's that, should it be determined in the future that a sale is appropriate, maintaining FGIC's 'AAA' rating would be a condition of the sale, the ratings company said. In a press release, S&P said, "FGIC has underwritten perhaps the most low-risk, conservative insured book of business in the bond insurance industry." FGIC was also rumored to have been up for sale in 1999. Standard & Poor's can be found on the Web at http://www.standardandpoors.com.