Structured finance market round up: Monolines teeter on the brink

COPYING AND DISTRIBUTING ARE PROHIBITED WITHOUT PERMISSION OF THE PUBLISHER: SContreras@Euromoney.com

By:
Louise Bowman
Published on:

Moody’s increased the pressure on some monoline guarantors last month by placing two firms, FGIC and XLCA, on review for possible downgrade from their triple-A ratings. MBIA and FGIC’s outlook has changed to negative and Ambac, Assured Guarantee, FSA and Radian are on stable outlook. In a brief conference call, in which the agency refused to make public the capital shortfalls of the firms, it stated that further changes are unlikely while the firms address their capital-raising plans, a process likely to take "some months".