It was previously posted in this space that, among other things, Dexia sold Bond Insurance Company Financial Security Assurance ("FSA") to Bond Insurance Company Assured Guaranty Ltd. It is now reported that Moody's Investors Service has reduced the Credit Ratings of both FSA and Assured below the point at which either can successfully issue Bond Insurance Policies. See Jody Shenn, "Assured, FSA Stripped of Aaa Ratings by Moody's (Update 1)" (Bloomberg.com, Friday, November 21, 2008).
After these two downgrades, Moody's rates the Credit of only one (1) Bond Insurance Company at a level high enough to write Bond Insurance if the past is any guide: Berkshire Hathaway Assurance Corp. See id.
Berkshire Hathaway is heavily invested in Moody's Investors Service.
Assured and FSA now join MBIA, Ambac and three other Bond Insurance Companies which used to have Credit Ratings by Moody's high enough to write -- and collect Premiums, of course, for writing -- Bond Insurance Policies, but are likely no longer rated high enough by Moody's to effectively compete with Berkshire Hathway Assurance Corp. in the Bond Insurance arena. See id.
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