Statement on San Bernardino, California

May 18, 2015

Assured Guaranty does not have any exposure to the City of San Bernardino’s general obligation or general fund debt obligations.

Assured Guaranty has moderate exposure to the San Bernardino Joint Powers Financing Authority’s Tax Allocation supported debt and negligible exposure to the San Bernardino, Sewer Revenue debt.  These obligations are secured by a pledge of “special revenues”  and therefore timely payment of debt service from pledged revenues should continue uninterrupted in the event of a City bankruptcy filing.