Fitch Withdraws Syncora's Ratings

NEW YORK--(Business Wire)--
Fitch Ratings has announced that it has withdrawn the ratings of
Syncora Holdings Ltd. (Syncora, formerly Security Capital Assurance
Ltd.) and its financial guaranty subsidiaries.

Fitch has withdrawn the following ratings, which were on Rating
Watch Positive:

Syncora Guarantee Inc. (SGI, formerly XL Capital Assurance Inc.)

Syncora Guarantee (U.K.) Ltd. (SG-UK, formerly XL Capital
Assurance (U.K.) Ltd.)

Syncora Guarantee Re Ltd. (SGRe, formerly XL Financial Assurance
Ltd.)

--Insurer financial strength (IFS) 'CCC'.

Syncora Holding Ltd.

--Long-term issuer rating 'CCC-';

--$250 million fixed/floating series A perpetual non-cumulative
preference shares 'CCC-'.

Twin Reefs Pass-Through Trust

--$200 million pass-through trust securities 'CCC-'.

Fitch believes Syncora's financial guaranty franchise is
effectively in run-off at the present time and that there is greatly
reduced investor interest in continued coverage of this rating.
Consistent with the 8-K filed by Syncora yesterday, the company will
no longer be providing Fitch with non-public information in order to
maintain the ratings.

Syncora's ratings have been on Rating Watch Positive since Aug.
11, 2008, reflecting the favorable implications of enhancements to
Syncora's financial and capital position given the execution of the
settlement agreements announced July 29, 2008 and the possibility that
Syncora's ratings could be upgraded upon full assessment of the
remaining insured portfolio. Syncora's future credit profile will
reflect both the company's capital position resulting from its
financial settlements with Merrill Lynch & Co. and XL Capital Ltd., as
well as a view of various qualitative factors including Syncora's
franchise value and business outlook, which appear to be highly
uncertain due to the negative implications from the company's exposure
to mortgage-related credits.

Syncora is a Bermuda domiciled holding company whose primary
operating subsidiaries, SGI and SGRe, provide insurance, reinsurance,
and financial products and services throughout the United States and
internationally. For June 30, 2008, the company reported consolidated
GAAP assets of $3.7 billion and shareholders equity of negative
($182.1) million. On an aggregated basis net par outstanding totaled
$130 billion as of June 30, 2008.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Ralph R. Aurora, 212-908-0528
Roger Merritt, 212-908-0636
Cindy Stoller, 212-908-0526 (Media Relations)

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