Add
SYCRF.PK to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| SYCRF.PK > SEC Filings for SYCRF.PK > Form 8-K on 8-Feb-2008 | All Recent SEC Filings |
8-Feb-2008
Other Events
On February 7, 2008, Moody's Investors Service ("Moody's") announced rating actions on Security Capital Assurance Ltd ("SCA"), XL Capital Assurance Inc. ("XLCA"), XL Financial Assurance Ltd. ("XLFA") and XL Capital Assurance (UK) Limited ("XLCA-UK"), as well as on certain Moody's-rated securities that are guaranteed or "wrapped" by XLCA, XLFA and XLCA-UK. Moody's has downgraded the insurance financial strength rating of XLCA, XLFA and XLCA-UK to "A3" from "Aaa". Moody's has downgraded SCA's senior debt rating to "(P)Baa3" from "(P)Aa3", its subordinated debt rating to "(P)Ba1" from "(P)A1" and its preference shares rating to "Ba2" from "A2". In addition, XLFA's Twin Reefs Pass-Through Trust was downgraded to "Baa2" from "Aa2". Finally, the Moody's-rated securities that are guaranteed or "wrapped" by XLCA, XLFA and XLCA-UK were also downgraded to "A3", except those securities with higher public underlying ratings.
Moody's release explained that Moody's evaluated SCA along five key rating factors: 1) franchise value and strategy, 2) insurance portfolio characteristics, 3) capital adequacy, 4) profitability, and 5) financial flexibility. The Moody's release noted that the rating actions reflect Moody's assessment of SCA's weakened capitalization and business profile resulting, in part, from its exposures to the U.S. residential mortgage market. Moody's outlook on SCA's ratings is negative.
In addition, Moody's noted in the release: "Based on the risks in SCA's portfolio, as assessed by Moody's according to the approach outlined above, capitalization required to cover losses at the Aaa target level would exceed $6 billion. This compares to Moody's estimate of SCA's claims paying resources of $3.6 billion, which Moody's considers to be more consistent with capitalization at the single A rating level."
XLFA, SCA's financial guarantee reinsurance subsidiary, has exercised its put option with the Twin Reefs Asset Trust to issue $200 million of non-cumulative perpetual Series B preferred shares bearing a monthly dividend of LIBOR + 100 basis points. The transaction is expected to close on February 11, 2008.
|
|