Response to S&P’s Request for Comment on Proposed Methodology For Incorporating Loan Modifications And Extraordinary Expenses Into U.S. RMBS Ratings

March 11, 2015

On December 3, 2014, S&P published a Request for Comment on their Proposed Methodology for Incorporating Loan Modifications and Extraordinary Expenses Into U.S. RMBS Ratings. If adopted, the proposed criteria could result in a downgrade to below investment grade of a number of insured RMBS – despite security holders receiving all amounts to which they are entitled under the terms of the securities and the Assured Guaranty insurance policy.

On January 16, 2015, Assured Guaranty responded to S&P stating our concerns regarding the proposed rating adjustment and offering possible solutions. On March 11, 2015, Assured Guaranty sent a second letter to S&P on this topic.

Please click on PDF file at this link to view our responses.

We urge you to read our response and email or call Jeremy Schneider at S&P on 212-438-5230 or jeremy.schneider@standardandpoors.com to provide your feedback.