The troubled rating's landscape for guaranty insurers continuedafter Moody's Investors Service took action on the insurancefinancial strength of two carriers late Friday.

Moody's said it placed the insurance financial strength of FGICCorp.'s main operating subsidiaries under review and downgraded theinsurance financial strength of two Syncora Holding'ssubsidiaries.

The insurance financial strength of "B1" of FGIC's subsidiaries,including Financial Guaranty Insurance Company and FGIC UK Ltd.,was placed under review because Moody's said it expects additionalstress on the underwriter's risk-adjusted capital position "inlight of continued deterioration in housing fundamentals and therelated implications on the company's mortgage-relatedexposures.

Moody's downgraded the "B2" rating of Syncora Guarantee Inc. andSyncora Guarantee (U.K.) Ltd. to "Caa1." The ratings are underreview with direction uncertain.

The financial strength of Syncora Guarantee Re Ltd. was alsodowngraded to "Caa1" from "B2" and withdrawn after its merger withSyncora Guarantee.

Moody's said it is concerned with higher mortgage related lossesin the company's portfolio as well as ongoing negotiations overtermination of credit default swap obligations. The action reflectsthe uncertainty over the outcome of those negotiations.