Moody’s Investors Service downgraded bond insurer Assured Guaranty Corp. (AGC) one notch to 'Aa3' from 'Aa2' late Thursday, but Assured Guaranty Municipal Corp. (AG Municipal) formerly Financial Security Assurance, retained its 'Aa3' rating.

AGC remains under review for downgrade, while AG Municipal’s outlook was changed to negative. The two companies are owned by the same parent — Assured Guaranty — but operate independently. Together they dominate the bond insurance market, and with Moody’s decision neither has a core rating advantage over the other.

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