Moody's Investors Service Monday downgraded Syncora Guarantee Inc. to Ca from Caa1 after the bond insurer reported a $2.4 billion statutory deficit thanks to further loss reserve and credit impairment charges it took on mortgage-related exposures in the fourth quarter. The outlook is developing.

Parent Syncora Holdings Ltd. last week said in a Securities and Exchange Commission filing that it had signed a nonbinding letter of intent with many of its counterparties to commute some of its structured finance exposures. It also reported it had agreed to set up a fund that would purchase some of the residential mortgage-backed securities it insured.

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.