WASHINGTON - Moody's Investors Service yesterday downgraded bond insurer Radian Asset Assurance to A3 from Aa3, citing deterioration in capital adequacy and an inability to produce near-term profits.

Pointing to management's announcement that the subsidiary of Radian Group Inc. "will likely cease writing new business and will serve as a potential source of capital for Radian's mortgage insurance platform," Moody's also gave the company a negative outlook.

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