Fitch Expects to Rate Assured Guaranty's $150MM Sr. Debt Issue 'A'; Rating Watch Evolving

NEW YORK--(Business Wire)--
Fitch Ratings expects to assign an 'A' rating, Rating Watch Evolving, to the
$150 million senior unsecured note issuance planned by Assured Guaranty US
Holdings Inc. (AGUSH), a subsidiary of Assured Guaranty Ltd. (NYSE: AGO). The
new notes will be fully and unconditionally guaranteed by Assured Guaranty Ltd.
(AGL). In addition, Fitch places the 'A' rating of the note on Evolving Rating
Watch.

The notes, which will be due June 1, 2014, will be pledged by investors to
collateralize their obligations under purchase contracts issued by AGL. The
purchase contracts will obligate the investors to purchase from AGL, no later
than June 1, 2012, a number of common shares, subject to a predefined formula.
As such, the notes are meant to constitute a form of mandatory convertible
securities.

Per Fitch's criteria report "Equity Credit for Hybrids & Other Capital
Securities," dated June 25, 2008, the instruments would be analyzed under Track
B, and considered class A securities with 0% equity credit for the first two
years, and class C securities with 50% equity credit for the third year.

The proceeds of the offering, as well as a concurrent (though non-contingent)
$400 million equity offering, will be used toward payment of the purchase price
for the previously announced acquisition of Financial Security Assurance
Holdings Inc. (FSA), as well as for general corporate purposes.

On May 4, 2009, Fitch downgraded all of its ratings for AGL and its subsidiaries
and placed the ratings on Rating Watch Evolving. In resolving the Rating Watch,
Fitch will continue to monitor credit developments in AGL and its subsidiaries'
insured portfolio, any efforts undertaken by AGL to enhance its overall capital
and risk position, as well as the management of FSA post-acquisition and its
implications with respect to franchise strength and capital. Fitch also notes
that it continues to consider overall developments in the markets for financial
guaranty insurance, which remain highly fluid.

Fitch expects to assign the following rating:

Assured Guaranty US Holdings Inc.

--$150 million senior notes due June 1, 2014 'A'; Evolving Rating Watch.

Fitch currently rates the Assured Guaranty Ltd. companies and debt as follows:

Assured Guaranty US Holdings Inc.

--$200 million 7% senior notes due 2034 'A';

--$150 million series A junior subordinated debentures due 2066 'A-'.

Assured Guaranty Corp.

Assured Guaranty (UK) Ltd.

--Insurer Financial Strength (IFS) 'AA'.

Assured Guaranty Re Ltd.

Assured Guaranty Re Overseas Ltd.

Assured Guaranty Re Mortgage Insurance Co.

--IFS 'AA-'.

All above ratings are currently on Rating Watch Evolving.

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
George Masek, 212-908-0617
Jeff Berkes, 212-908-0734
Roger Merritt, 212-908-0636
Brian Bertsch, 212-908-0549 (Media Relations)
brian.bertsch@fitchratings.com

Copyright Business Wire 2009