Statement on State of Illinois Exposure

August 2, 2017

Assured Guaranty insurance and reinsurance is in force with respect to various bonds, supported by a number of distinct revenue streams, related to the State of Illinois and public higher education institutions within the state. These bonds include general obligation and tax-backed bonds, as well as public higher education bonds that are secured by unlimited tuition pledges, limited tuition pledges or lease obligations. In a number of cases, Assured Guaranty would have to make a claim payment only if the obligor failed to pay on its obligation and another bond insurer failed to pay on its guaranty, as Assured Guaranty insured bonds that were already guaranteed by another bond insurer.

The tables below detail our exposure to the State of Illinois and public higher education institutions within the state. All of the bonds listed are presently current on their debt service payments. Additionally, holders of these bonds insured by Assured Guaranty are currently benefiting from their bonds’ relative price stability compared with similar uninsured obligations of these obligors.