Moody’s Investors Service last night said it will review for possible upgrade the 'B2' ratings of Syncora Guarantee and Syncora Guarantee Re following the recent announcement that Syncora Holdings had closed on its deals with former parent XL Capital and Merrill Lynch.

Moody’s said the agreements will significantly improve the capital positions of Syncora Guarantee and Syncora Guarantee Re, but that concerns about remaining mortgage-related exposures and “franchise value” will likely prevent ratings from moving above investment grade.

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