Financial Guaranty Insurance Company
Encyclopedia
Financial Guaranty Insurance Company (FGIC) is a monoline bond insurer established in 1983. It faced significant financial difficulties in 2008 which affected its ability to write new business.
The firm was acquired in December 2003 by a consortium of investors including PMI Group
, The Blackstone Group, The Cypress Group and CIVC Partners
.
As of March 24, 2009, it was rated "CC" by Standard & Poor's
(S&P) and "Caa3" by Moody's
Investors Service. Fitch Ratings
had already withdrawn its rating, while Moody's announced it would remove its rating. The ratings are negative from both Moody's and Standard & Poor's
On November 24, 2009, it was released that the New York Insurance Department ordered FGIC to suspend payment on all claims due.
The firm was acquired in December 2003 by a consortium of investors including PMI Group
PMI Group
The PMI Group is a holding company whose primary subsidiary is the PMI Mortgage Insurance Co. .PMI has a 50% equity ownership in CMG Mortgage Insurance Company and CMG Mortgage Assurance Company , a provider of private mortgage insurance to the credit union industry.The company was founded in 1972...
, The Blackstone Group, The Cypress Group and CIVC Partners
CIVC Partners
CIVC Partners, previously known as Continental Illinois Venture Corporation, is a Chicago-based private equity firm that presently has over $1.3 billion of equity capital under management. The firm's predecessor was established in 1970 as a subsidiary of Continental Illinois National Bank and Trust...
.
As of March 24, 2009, it was rated "CC" by Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
(S&P) and "Caa3" by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
Investors Service. Fitch Ratings
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
had already withdrawn its rating, while Moody's announced it would remove its rating. The ratings are negative from both Moody's and Standard & Poor's
On November 24, 2009, it was released that the New York Insurance Department ordered FGIC to suspend payment on all claims due.