Syncora Guaranty Inc. and Syncora Guaranty Re Ltd. have both terminated their contracts with Fitch Ratings, parent Syncora Holdings Ltd. said in an SEC filing yesterday.
The terminations apply to both companies' insurer strength ratings, as well as any fixed-income ratings for Syncora or its subsidiaries it used to issue securities. The companies will continue their relationships with Standard & Poor's and Moody's Investors Service.
"Since the company has ceased writing substantially all new business, management believes ratings from two ratings agencies, Moody's Investor Services Inc. and Standard & Poor's Ratings Services, are sufficient as the company works towards implementing its previously announced strategic plan," the filing said.
In July, Syncora agreed in separate deals to terminate exposures it had with Merrill Lynch & Co. and former parent XL Capital Ltd., boosting its capital position.
Other downgraded bond insurers have also taken steps toward cleaning up their books. Financial Guaranty Insurance Co. recently agreed to have MBIA Inc. reinsure $184 billion worth of its public finance book, releasing capital for FGIC to commute deals with its structured finance counterparties.
FGIC recently filed an application with the New York State Insurance Department to complete the transaction with MBIA. Interested parties seeking to comment on or object to the deal should contact the department before 5 p.m. Eastern Daylight Time on Sept. 15.
