S&P Announces Rating Actions on Bond Insurers; Teleconference Today

December 20, 2007

Standard & Poor’s Ratings Services has announced various ratings actions (see list below) on six financial guaranty insurance companies. “The rating actions were prompted by worsening expectations for the performance of insured nonprime residential mortgage backed securities and CDOs of asset backed securities,” S&P explained.

The rating agency noted that the changes and affirmations are based upon “current stress test analysis, the details of which are being published simultaneously with this release, the affected companies may experience claims and/or capital consumptive negative rating transitions such that their capital resources may no longer be sufficient at their respective rating levels.”

S&P also said: “Another consideration in the analysis, if there is a capital shortfall, is the magnitude of the shortfall and the extent to which the company has raised or is planning to raise new capital, and the viability of that capital plan.”

>List of Ratings/Outlook ChangesACA Financial Guaranty Corp.- Financial strength, financial enhancement and issuer credit to ‘CCC’/WatchDev from ‘A’/WatchNeg
Ambac Assurance Corp. – Ambac Assurance U.K. Ltd. – Connie Lee Insurance Co.- Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable
Ambac Financial Group Inc. – Senior unsecured and issuer credit to ‘AA’/Negative from ‘AA’/Stable; Subordinated hybrid security to ‘A+’/Negative from ‘A+/Stable.
Financial Guaranty Insurance Co. – Financial strength, financial enhancement and issuer credit to ‘AAA’/WatchNeg from ‘AAA’/Stable
FGIC U.K. Ltd. – Financial strength, financial enhancement and issuer credit to ‘AA’/WatchNeg from ‘AAA’/Stable
FGIC Corp. -Senior unsecured and issuer credit to ‘AA’/WatchNeg from ‘AA/’Stable
MBIA Insurance Corp. – Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable
MBIA Insurance Corp. of Illinois – Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable
MBIA Assurance S.A. – Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable
MBIA Inc. – Senior unsecured and issuer credit to ‘AA’/Negative ‘AA’/Stable
XL Capital Assurance Inc.; XL Financial Assurance Ltd. – Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable
XL Capital Assurance (UK) Ltd. – Financial strength, financial enhancement and issuer credit to ‘AAA’/Negative from ‘AAA’/Stable

Ratings Unchanged
Assured Guaranty Corp. – Financial strength, financial enhancement and issuer credit ‘AAA/Stable
Assured Guaranty (UK) Ltd. – Financial strength, financial enhancement and issuer credit ‘AAA’/Stable
CIFG Guaranty; CIFG Europe; CIFG Assurance North America Inc. – Financial strength, financial enhancement and issuer credit ‘AAA’/Negative
Financial Security Assurance Inc. – Financial strength, financial enhancement and issuer credit ‘AAA’/Stable
Financial Security Assurance (UK) Ltd. – Financial strength, financial enhancement and issuer credit ‘AAA’/Stable
Financial Security Assurance Holdings Ltd. – Senior unsecured and issuer credit ‘AA/Stable; Junior subordinated hybrid security ‘A+’/Stable
Radian Asset Assurance Inc. – Financial strength, financial enhancement and issuer credit ‘AA’/Stable
PMI Guaranty Co. – Financial strength, financial enhancement and issuer credit ‘AA/Negative

TELECONFERENCE
Standard & Poor’s will host a teleconference today at 3 p.m. EST [9:00 p.m. in Europe; 8:00 p.m. UK.
Live-Dial-In-Numbers:
US/Canada: 1-888-324-0379
All Others: 1-210-234-6980
Conference ID#: 8434357
Passcode: SANDP1
Replay Numbers:
US/Canada: 1-866-455-0459
All Others: 1-203-369-1259
Replay will expire on Jan. 16, 2008

Source: Standard & Poor’s – www.standardandpoors.com

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