U.S. District Court Judge Jed Rakoff’s ruling last week in favor of Assured Guaranty Municipal Corp. is a credit positive for financial guarantors, Moody’s Investors Service said in a recent report.

In addition to the ruling, which found that Flagstar Bancorp Inc. had breached its contractual responsibilities by failing to repurchase materially defective loans, the judge ordered Flagstar to pay AGM $90.1 million, plus interest and expenses. Flagstar announced that it will appeal the decision.

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