The financial strength rating of CIFG Guaranty was downgraded to A1 from Aaa by Moody's Investors Service yesterday, reflecting the rating agency's views on the monoline insurer's exposure to subprime mortgage-related risk, weakened capital position, impaired business prospects, and a strategic direction that remains unclear. The outlook remains stable.

"In Moody's opinion, CIFG's significant exposure to mortgage-related risk has materially adverse consequences for its business and financial profile beyond the associated impact on capitalization, and affects our opinion about CIFG's other key rating factors," Moody's said in a release.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.