Source:
MarketWatchFitch Ratings said on Wednesday that it cut the AAA ratings of Financial Guaranty Insurance Company (FGIC) to AA because the bond insurer doesn't have enough capital to keep its top rating. Fitch warned it may cut FGIC's ratings further in future. "The existing capital deficiency, which Fitch now believes totals approximately $1.3 billion, resulted from rapid credit deterioration in FGIC's insured portfolio," the rating agency said in a statement. Fitch is most concerned about transactions backed by structured finance collateralized debt obligations backed by subprime residential mortgage-backed securities (RMBS) and direct exposure to securities backed by prime second-lien home loans.
Read more:
http://www.marketwatch.com/news/story/fitch-cuts-fgic-rating-aa/story.aspx?guid=%7B8BA47A22%2D30A8%2D4CB1%2D9FC6%2D17CA52CC95BC%7D&dist=hplatest