Standard & Poor's Friday put its A rating for Financial Guaranty Insurance Co. on credit watch with negative implications. The rating had been on watch with developing implications.

In explaining the change, Standard & Poor's cited FGIC's likely inability to write new business or raise new capital. FGIC recently announced that it would cease writing new business, while the bond insurer's principal owner, the PMI Group, said it no longer views FGIC as a worthwhile investment and will not contribute any additional capital to it.

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