Kroll Bond Rating Agency, a three-year-old firm on a mission to restore trust in credit ratings after the 2008 financial crisis, said Assured Guaranty's Municipal Assurance Corp was the ideal first case for its refined methodology to assess guarantors.

Kroll, which assigned the industry's only AA-plus rating and a stable outlook to Assured's new municipal-only insurer earlier this month, views capital as paramount, members of the rating team said in an interview. The firm's rating level for a financial guarantor is largely based on the insurer's ability to pay claims under a two-step stress case scenario which places the company in a run-off, they said.

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