Standard & Poor's affirmed Build America Mutual's AA stable rating, the rating company's highest score for an active bond insurer.

The municipal-only bond insurer's competitive position and capital adequacy well above the AAA bond insurance capital requirements contributed to the firm's high ranking, S&P said in a report Tuesday. S&P cited the start-up nature of the company, which comes with fixed costs, as a weakness that could hinder operating performance in the near term.

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