Standard & Poor's Wednesday lowered FGIC Corp.'s counterparty credit rating and senior unsecured notes to CCC with a negative outlook from B, while keeping the BB financial strength rating of Financial Guaranty Insurance Co. on negative watch.

FGIC Corp. has said it has enough cash to funds its obligations for the next year, but the insurance subsidiary can't pay dividends without the approval of the New York Insurance Department, Standard & Poor's said.

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