Fitch Ratings downgraded the insurer financial strength rating of FGIC Corp. and its financial guaranty insurance subsidiaries Financial Guaranty Insurance Co. and FGIC UK to 'AA' from 'AAA'. The rating agency also downgraded FGIC Corp.'s long-term issuer rating to 'A' from 'AA' and $325 million of 6% senior notes due Jan. 15, 2034 to 'A' from 'AA'. The ratings remain on Rating Watch Negative. Fitch said that it took these actions because FGIC has not yet raised new capital or taken other risk mitigation actions to meet the rating agency's 'AAA' capital guidelines within a timeframe consistent with Fitch's expectations. FGIC has a modeled capital shortfall of approximately $1.3 billion at the 'AAA' rating threshold. Last month FGIC said that had developed, and was actively pursuing, a comprehensive plan to enhance its capital resources and created an adequate cushion in excess of Fitch's triple-A capital requirements. However the company said that it was not certain that the plan would be completed in a timely manner to satisfy all of the rating agencies. Standard & Poor's and Moody's Investors Service have the company on CreditWatch with Negative Implications and review for a downgrade, respectively.
-
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
5h ago -
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24