CDC IXIS Financial Guaranty of France Receives Triple-A's from Fitch,

In what may set the stage for French-based CDC IXIS Financial Guaranty's move into the U.S. bond insurance market, two rating agencies have given the newly launched holding company and its European subsidiary, CDC IXIS Financial Guaranty Europe, triple-A insurer financial strength ratings.

Fitch and Standard & Poor's assigned the ratings with a stable outlook over the last two weeks. CDC IXIS, the French-based parent company, is awaiting a decision on a rating from Moody's Investors Service.

In the United States the holding company operates CDC IXIS Financial Guaranty North America, which is based in New York City but has not yet received a license.

The company believes that a Aaa rating from Moody's Investors Service is imminent, though a Moody's spokesman would not comment. "Moody's is still working on it," said Steve Klein, managing director and head of the CIFG municipal group. "It's certainly our plan to have triple-A's from all three agencies, both in Europe and in the U.S."

He said the company hopes to be in business in Europe before year's end, and hopes to be in business in the U.S. early next year.

CIFG is dedicated to the credit enhancement of asset-backed securities and other structured finance products in the U.S. and Europe, as well as municipal bonds in the U.S. In assigning triple-A ratings, Fitch and Standard & Poor's pointed to CIFG's initial capitalization of $220 million in hard capital, ith an additional $220 million in soft capital provided by CDC IXIS. CIFG Europe was funded with 32 million Euros in capital from CIFG, and 20 million Euros for a stop-loss treaty to maintain CIFG Europe's statutory capital and surplus.