Moody's attributed the rating action to "the weakened capital profile of the group as a result of its mortgate and mortgage-related CDO exposures, as well as uncertainty over CIFG's future strategic direction." Moody's said it would complete the review in the next two weeks. CIFG released a statement saying, "CIFG continues to work with Moody's and exploring all of its options." Although CIFG received a substantial $1.5 billion capital infusion in December from its parents, Caisse Nationale des Caisses d'Epargne and Banque Federale des Banques Populaires, Moody's revised its RMBS loss estimate upward to reflect the continuing deterioration in the U.S. mortgage markets. As result, CIFG's capital adequecy profile has fallen below the "AAA" target-level despite the financial boost, according to Moody's. The review will focus on evaluating CIFG's capital remediation plans and strategic direction, Moody's said.

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