CHICAGO — Moody's Investors Service stripped Financial Guaranty Insurance Co. and XL Capital Assurance Inc. of their investment-grade insurer ratings on Friday as another struggling bond insurer, ACA Capital Holdings Inc., entered into a fifth forbearance agreement with its counterparties that temporarily waives various penalties triggered by its downgrade last year.

Moody's downgraded the FGIC subsidiary that provides bond insurance to B1 with a negative outlook from Baa3 while downgrading the parent holding company, FGIC Corp., to Caa2 from B3.

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