CHICAGO - Standard & Poor's on Friday downgraded the ratings of two insurers, XL Capital Assurance Inc. and CIFG Assurance NA, to the respective ratings of BBB-minus and A-minus, and placed Financial Guaranty Insurance Corp.'s BB on CreditWatch with negative implications.

XLCA's credit, knocked down three notches to the lowest investment-grade rating of BBB-minus from A-minus, remains on negative watch. The latest downgrade of XLCA and XL Financial Assurance Ltd. , both subsidiaries of Security Capital Assurance Ltd., reflects the agency's assessment that the level of potential losses the companies' face from their 2005-2007 vintage resident mortgage-backed securities exposure is higher than previous estimates.

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.