Financial Guaranty Insurance Co. was downgraded by Standard & Poor’s yesterday to AA from AAA, based on the rating agency’s most recent downg ades of residential mortgage-backed securities, some of which are guaranteed by FGIC. The insurer remains on credit watch with developing implications.

At the same time, Standard & Poor’s placed MBIA Insurance Corp. and XL Capital Assurance Inc. on credit watch with negative implications. The triple-A rating so far remains intact for both insurers.

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