A reincarnation of the Build America Bond program would be another credit negative for bond insurer Assured Guaranty Ltd, according to Moody's Investors Service.

The rating agency said President Obama's Feb. 14 proposal to revive the BAB program on a permanent basis with a 28% federal subsidy would "effectively shut out" a portion of the insurable market. That would hurt Assured, the only active bond insurer, and possibly force inactive insurers such as National Public Finance Guarantee Corp. to "reevaluate their business plans."

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