FGIC Comments on Moody's Announcement of Rating Review

NEW YORK--(Business Wire)--FGIC Corporation, the parent company of Financial Guaranty
Insurance Company, today commented on a December 14, 2007 announcement
by Moody's Investors Service that it has placed FGIC's 'Aaa' insurance
financial strength rating on review for possible downgrade. Moody's
indicated that their review of FGIC's ratings for possible downgrade
will focus on assessing the capital remediation plan FGIC is now
pursuing and the plan's ultimate effectiveness in restoring FGIC's
capital adequacy to levels consistent with a 'Aaa' rating and that
their review is expected to conclude over the next few months. Moody's
indicated that they would likely confirm FGIC's 'Aaa' rating to the
extent that FGIC is able to rebuild its capital position and
adequately address FGIC's capital adequacy shortfall under Moody's
capital models.

The Company has developed, and is actively pursuing, a
comprehensive plan to enhance its capital resources. This plan is
intended to satisfy, and create an adequate cushion in excess of,
Moody's triple-A capital requirements, as well as those of its other
rating agencies, Standard & Poor's and Fitch Ratings. The Company's
investors have voiced their support for the plan and their commitment
to maintaining FGIC's triple-A ratings. However, the Company can give
no assurance that the plan will be implemented to the satisfaction of
all rating agencies in a timely manner.

Moody's also placed FGIC UK Limited's 'Aaa' insurance financial
strength rating and FGIC Corporation's 'Aa2' senior unsecured debt
rating, on review for possible downgrade.

Company Profile

FGIC Corporation is an insurance holding company whose wholly
owned subsidiary, Financial Guaranty Insurance Company, provides
credit enhancement on infrastructure finance and structured finance
securities worldwide. Established in 1983, FGIC is one of the four
leading monoline financial guarantors. FGIC typically guarantees the
scheduled payments of principal and interest on an issuer's
obligation. FGIC's financial strength is rated triple-A by Moody's
Investors Service, Standard & Poor's and Fitch Ratings.

Cautionary Statement

This press release contains "forward-looking statements" - that
is, statements related to possible future events. Forward-looking
statements often address expectations and beliefs as to future
performance, results and business plans. You should not place undue
reliance on forward-looking statements, because they are necessarily
subject to risks and uncertainties that could cause actual results and
performance to differ materially from those expressed or implied by
our forward-looking statements. Among the factors that could cause our
results or performance to differ are: (1) our ability to execute our
capital enhancement and risk mitigation plan in a timely manner and
thereby maintain our current triple-A ratings; (2) credit market
conditions and other factors that could reduce demand for our
products; (3) our ability to execute our business plan; (3)
competitive conditions and pricing levels; (4) legislative and
regulatory developments within the United States and abroad, including
the effect of new pronouncements by accounting authorities and changes
in tax laws; (5) the level of activity within the national and
international credit and other markets; (6) fluctuations in the
economic, credit or interest rate environment in the United States or
abroad; (7) possible defaults and/or additional ratings downgrades or
actions in mortgage-backed securities and (8) other risks and
uncertainties that have not been identified by us at this time.
Forward-looking statements are based upon our current expectations and
beliefs concerning future events. We undertake no obligation to update
or revise any forward-looking statement, except as required by law.

FGIC Corporation
Brian Moore, 212-312-2776
Senior Vice President
Investor Relations and Marketing
brian.moore@fgic.com

Copyright Business Wire 2007