KBRA Assigns Rating to Assured Guaranty US Holdings Inc.'s Expected Senior Note Issuance
16 Aug 2023 | New York
KBRA assigns a long-term rating of A+ to the senior unsecured notes (the Notes) to be issued by Assured Guaranty US Holdings Inc. (AGUS). The Notes are fully and unconditionally guaranteed by Assured Guaranty Ltd. AGUS intends to use the net proceeds from this offering to redeem certain outstanding indebtedness. The Outlook on the Notes is Stable.
On October 21, 2022, KBRA affirmed the outstanding insurance financial strength ratings (IFSR) for Assured Guaranty Municipal Corp. (AGM) (AA+/Stable) and for Assured Guaranty Corp. (AGC) (AA+/Stable) and affirmed the outstanding issuer rating for AGUS (A+/Stable). AGUS, along with Assured Guaranty Municipal Holdings Inc. (AGMH), are U.S. holding companies under the publicly traded parent company, Assured Guaranty Ltd. AGUS and AGMH have public debt outstanding; only AGUS, AGM and AGC are rated by KBRA.
Key Credit Considerations
The three-notch differential of the issuer rating for AGUS relative to the IFSRs reflects structural subordination, regulatory restrictions, and overall financial flexibility. The IFSRs reflect each entity’s substantial claims paying resources, experienced management team and ability to withstand KBRA’s conservative stress scenario losses assumptions across its insured portfolio.
Rating Sensitivities
Market factors that include a more favorable interest rate environment, firmer pricing conditions and sustainable profitability could result in positive rating action.
Deterioration in claims-paying resources and insured portfolio credit quality could result in negative rating action.
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