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MOODY'S RATES THE DEBT OF ENHANCE FINANCIAL SERVICES GROUP INC. 'Aa3'

 NEW YORK, Feb. 25 /PRNewswire/ -- Effective today, Moody's assigns a debt rating of "Aa3" to the proposed issuance by Enhance Financial Services Group Inc. (Enhance Financial) based on the strength of its principal operating subsidiary, Enhance Reinsurance Company ("Enhance" "Aaa" claims paying-ability).
 The rating reflects the strong earnings growth, large capital base and conservative underwriting guidelines of Enhance that has allowed it to become an integral part of the financial guaranty industry providing reinsurance to the primary insurers. Enhance has developed a low risk, well diversified insured portfolio. The level of ordinary dividend payments Enhance can pay to Enhance Financial to support debt service are limited by New York state insurance law. Because of this, debt service payments are subordinate to insurance claim payments and the debt rating of "Aa3" is lower than the claims-paying rating of "Aaa." Enhance's stability of future earnings generated from strong and improving underwriting and investment income provide a high margin of bondholder protection. The net proceeds from the $75 million proposed debt issuance is expected to be used to boost Enhance's capital size and increase their ability to write new business without further leveraging its capital base.
 Enhance Financial posted revenue of $27.1 million and net income of $22.1 million for the first nine months of 1992.
 -0- 2/25/93
 /CONTACT: Laura Levenstein, vice president, 212-553-0319; Nicholas Ferreri, assistant vice president, 212-553-3628; or Allen Klee, senior analyst, 212-553-4117, all of Moody's Public Finance Department/
 (EFS)


CO: Enhance Financial Services Group Inc. ST: IN: FIN SU: RTG

GK-OS -- NY061 -- 0457 02/25/93 14:22 EST
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Publication:PR Newswire
Date:Feb 25, 1993
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