Standard & Poor's Rating Service took ratings action against six bond insurers affected by the subprime mortgage crisis, and Moody's announced that it placed subsidiaries of XL Insurance on review for possible downgrade.
Yesterday, S&P said it took the actions because of "worsening expectation for the performance of insurance nonprime residential mortgage-backed securities and CDOs (collateralized debt obligation) of asset-backed securities."
The rating service said the six are expected to see claims and/or suffer rating downgrades that will affect their capital resources, making those resources insufficient at the current rating level.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
