Assured Guaranty Comments on Standard & Poor's Rating and Announces Financial Guaranty Direct Par Written for the Eleven Months Ended November 30, 2004.

HAMILTON, Bermuda -- Standard & Poor's (S&P) announced today the affirmation of the 'AAA' financial strength rating for Assured Guaranty Corp. (AGC), the principal direct financial guaranty insurance subsidiary of Assured Guaranty Ltd. (NYSE:AGO). In addition, S&P maintained its negative outlook on AGC, indicating that it will continue to evaluate the transition of AGC's business from a reinsurance to a direct model and will review the company's progress within six months.

Dominic Frederico, President and Chief Executive Officer of Assured Guaranty Ltd., commented, "While we are disappointed that AGC's ratings outlook remains negative, AGC is making solid progress in the direct financial guaranty business. We look forward to continuing our discussions with S&P as we continue the successful development of AGC into a leading financial guaranty insurance company." Mike Schozer, President of AGC, stated that: "Our progress in the U.S. public finance business is of particular interest to S&P. The majority of our mandates were won in the fourth quarter, after the doubling of our staff in that business in September. We expect to demonstrate continued growth and market acceptance in that business during 2005."

Robert Mills, Chief Financial Officer of Assured Guaranty Ltd., added, "We are pleased to announce that the financial guaranty direct segment's gross par written for the eleven months ended November 30, 2004 totaled approximately $10.7 billion, almost half of which was written in the fourth quarter. We have written $9.8 billion in structured finance and $0.9 billion in U.S. and international public finance. Fourth quarter 2004 financial results will be released during the week of February 7, 2005."

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at http://www.assuredguaranty.com.

Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, the Company's forward-looking statements, such as its statements regarding progress in the financial guaranty business, could be affected by a significant reduction in the amount of reinsurance ceded by one or more of our principal ceding companies, rating agency action such as a ratings downgrade, difficulties with the execution of the Company's business strategy, contract cancellations, developments in the world's financial and capital markets, more severe losses or more frequent losses associated with products affecting the adequacy of the Company's loss reserve, changes in regulation or tax laws, the Company's dependence on customers, decreased demand or increased competition, loss of key personnel, the effects of mergers, acquisitions and divestitures, changes in accounting policies or practices, and changes in general economic conditions, as well as management's response to these factors, and other risk factors identified in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.