Fitch Affirms 'AAA' IFS Rtg For ACE Guaranty; Outlook Neg.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 16, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms the 'AAA' insurer financial strength rating of ACE Guaranty Corp. (ACE Guaranty) with a Negative Rating Outlook. The Negative Rating Outlook was initially assigned in July 2002 and covers a one- to two-year horizon and reflects less favorable relationships and contractual terms with ACE Guaranty's major clients, as well as increased competition. ACE Guaranty is a leading monoline financial guaranty reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. of U.S. municipal bonds, asset- and mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , collateralized debt obligations Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, , as well as a direct provider of financial guaranty insurance for single name, asset-backed, and portfolio credit default swaps. The company also reinsures trade credit transactions. ACE Guaranty's 'AAA' insurer financial strength rating reflects the company's experienced management team, high-quality insured portfolio, significant market presence, high-quality investment portfolio, and ownership by ACE Limited (ACE; long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating 'A', commercial paper rating 'F1'), a large, Bermuda-based, multiline insurance holding company with $6.1 billion in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. as of Dec. 31, 2001. As of Dec. 31, 2001, ACE Guaranty had net par in force of $69.2 billion, supported by $1.5 billion of total-claims paying resources. ACE Guaranty's $910 million investment portfolio is composed of very high-quality, fixed income investments, with 79% rated 'AAA'. A copy of the report titled 'ACE Guaranty Corp.' is available on Fitch Ratings' web site at 'www.fitchratings.com' by visiting the U.S. Public Finance page and looking at the criteria reports listed in the Financial Guaranties section, or by contacting Market Services at 800/853-4824. |
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