Assured Guaranty Protects Insured Bondholders in PRIFA Default

January 7, 2016

On January 4, 2016, the Puerto Rico Infrastructure Financing Authority (PRIFA) failed to make interest payments in an amount equal to $450,625 due January 1, 2016 on certain PRIFA obligations insured by Assured Guaranty.  Assured Guaranty has $18 million of net par exposure to PRIFA with debt service payments coming due semi-annually through 2041.  Upon receipt of a claim from the custodian on January 5, 2016, Assured Guaranty made claim payments later that day in an amount equal to $450,625 in accordance with the terms of its insurance policies.

All other payments due on January 1, 2016 on Assured Guaranty Puerto Rico exposures were paid in full by the Puerto Rico government borrowers.

The bridge financing bonds purchased by Assured Guaranty from PREPA on July 1, 2015 have been fully repaid, with interest, in accordance with their terms.

As always, investors that hold bonds insured by Assured Guaranty can be certain they will continue to receive full and timely payment of scheduled debt service when due in accordance with the terms of Assured Guaranty’s insurance policies.  Total group claims-paying resources of Assured Guaranty exceed $12.4 billion, which includes an $11.3 billion investment portfolio that annually generates approximately $400 million of investment income.

The information set out above contains forward-looking statements that reflect the current views of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty) with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements, including without limitation, those resulting from adverse developments in Assured Guaranty’s insured portfolio or its inability to execute its strategies. Readers should also consider the other risk factors contained in Assured Guaranty's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of January 7, 2016, and Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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