HAMILTON, Bermuda, June 20 /PRNewswire-FirstCall/ -- Security Capital Assurance Ltd ("SCA" or the "Company") today confirmed Moody's Investor Services ("Moody's") downgraded the insurance financial strength ("IFS") ratings of SCA's subsidiaries, XL Capital Assurance Inc. ("XLCA") and XL Financial Assurance Ltd ("XLFA"), as well as XLCA subsidiary, XL Capital Assurance (U.K) Limited.
The following rating actions were taken by Moody's today on SCA operating companies:
XL Capital Assurance Inc. -- IFS from A3 to B2, outlook is negative;
XL Capital Assurance (U.K.) Limited -- IFS from A3 to B2, outlook is negative; and
XL Financial Assurance Ltd -- IFS from A3 to B2, outlook is negative. About Security Capital Assurance
Security Capital Assurance Ltd is a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange . For more information please visit http://www.scafg.com/ .
Contact:
Investors
Frank Constantinople
+1 441-279-7450
This release contains statements about future results, plans and events that may constitute "forward-looking" statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that these statements are not guarantees of future results, plans or events and such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These factors include, but are not limited to: recent and future rating agency statements and ratings actions; the outcome of the Company's dispute with Merrill Lynch International ("MLI") concerning the Company's termination of seven credit default swap ("CDS") contracts; the Company's ability to successfully implement its strategic plan; higher risk of loss in connection with obligations guaranteed by the Company due to recent deterioration in the credit markets stemming from the poor performance of subprime residential mortgage loans; the suspension of writing substantially all new business and the Company's ability to continue to operate its business in its historic form; the development and implementation of a strategic plan; developments in the world's financial and capital markets that adversely affect the performance of the Company's investments and its access to such markets; the performance of invested assets, losses on credit derivatives or changes in the fair value of credit derivatives; the availability of capital and liquidity; the timing of claims payments and the receipt of reinsurance recoverables; greater frequency or severity of claims and loss activity including in excess of the Company's loss reserves; changes in the Company's reinsurance agreements with certain of its subsidiaries; the impact of provisions in business arrangements and agreements triggered by the ratings downgrades; the impact of other triggers in business arrangements including CDS contracts; changes in regulation, tax laws, legislation or accounting policies or practices; changes in officers; general economic conditions; changes in the availability, cost or quality of reinsurance or retrocessions; possible downgrade of the Company's reinsurers; possible default by the counterparties to the Company's reinsurance arrangements; the Company's ability to compete; changes that may occur in Company operations and ownership as the Company matures; and other additional factors, risks or uncertainties described in Company filings with the SEC, including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and also disclosed from time to time in subsequent reports on Form 10-Q and Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. The Company does not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made.
