If the ratings agencies do in fact lower the rating of ACA Financial Guaranty, the ratings on the bonds guaranteed by ACA will follow, said agency sources.

Though most, if not all, of ACA insured asset-backeds are private placements, according to the company's third quarter investor report, ACA has exposure to United National Home Loan Owner Trust 1999-1A, Keystone Owner Trust 1998P2 M1, Goleta National Bank 1999-1.

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