Assured Guaranty Ltd. Responds to Moody`s Ratings Downgrade of Assured Guaranty Corp. to Aa3 and Affirmation of Aa3 Rating of Assured Guaranty Municipal Corp.

HAMILTON, Bermuda--(Business Wire)--
In response to the downgrade by Moody`s Investors Service of the insurance
financial strength rating of bond insurer Assured Guaranty Corp. (AGC) to Aa3
from Aa2 and Moody`s affirmation of the Aa3 insurance financial strength rating
of Assured Guaranty Municipal Corp. (AGM), Dominic Frederico, President and
Chief Executive Officer of Assured Guaranty Ltd. (NYSE:AGO) ("the Company"),
today made the following statement:

"We are pleased that AGC and AGM have both maintained Moody`s ratings in the
double-A rating category, a rating that connotes significant financial strength
in today`s economic environment. In assigning these ratings, Moody`s has put our
insured residential mortgage exposures through a revised stress loss scenario,
which is based on an extremely pessimistic view of the future performance of
residential mortgage exposures. Even under Moody`s stressful scenario, the
Assured companies` combined $12.5 billion of claims-paying resources were more
than sufficient to meet all projected obligations. We are committed to
maintaining the highest possible ratings and plan to implement a capital plan to
meet rating agency requirements to maintain double-A ratings. Moreover, these
capital initiatives, which entail external reinsurance that has already been
negotiated, intercompany capital support and approximately $300 million of
additional capital, are to solely support rating agency capital requirements. In
the absence of true capital regulation by federal or state authorities, we
believe this is in the best interests of the Company.

"In its review, Moody`s noted `our strong risk management, which has contributed
to much better performance than our peers during the financial crisis` and `our
very strong competitive position in the U.S. municipal market.`

"Despite the ratings uncertainty over the past few months, demand for our
guaranty products has remained strong in the U.S. municipal market, as
demonstrated by our previously announced third quarter 2009 U.S. public finance
new issue volume. The two direct bond insurers guaranteed a total of
approximately $8.7 billion in U.S. municipal new issue volume, representing 9.6%
of total par issued for the third quarter 2009. Through October 2009, both
companies combined have guaranteed approximately $32.0 billion in new issues,
representing 9.5% of public finance new issuance. We are confident that we will
continue to provide value for issuers and investors across our markets."

End of statement

Assured Guaranty Ltd. is a publicly-traded Bermuda-based holding company. Its
operating subsidiaries provide credit enhancement products to the U.S. and
international public finance, structured finance and mortgage markets. More
information on Assured Guaranty Ltd. and its subsidiaries can be found at
www.assuredguaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect the current
views of Assured Guaranty Ltd. (together with its subsidiaries, "Assured
Guaranty") with respect to future events and financial performance 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. Assured Guaranty`s forward-looking statements could be affected by:

* rating agency action, including a ratings downgrade at any time of Assured
Guaranty Ltd. or any its subsidiaries and/or of transactions insured by such
subsidiaries, both of which have occurred in the past;
* developments in the world's financial and capital markets that adversely
affect issuers` payment rates, Assured Guaranty`s loss experience, its ability
to cede exposure to reinsurers, its access to capital, its unrealized (losses)
gains on derivative financial instruments or its investment returns;
* changes in the credit markets, segments thereof or general economic
conditions;
* more severe or frequent losses affecting the adequacy of Assured Guaranty`s
loss reserve;
* the impact of market volatility on the mark-to-market of its contracts written
in credit default swap form;
* reduction in the amount of reinsurance facultative cessions or portfolio
opportunities available to Assured Guaranty;
* decreased demand or increased competition;
* changes in applicable accounting policies or practices;
* changes in applicable laws or regulation, including insurance and tax laws;
* other governmental actions;
* difficulties with the execution of Assured Guaranty`s business strategy;
* contract cancellations;
* Assured Guaranty`s dependence on customers;
* loss of key personnel;
* adverse technological developments;
* the effects of mergers, acquisitions and divestitures;
* natural or man-made catastrophes;
* other risks and uncertainties that have not been identified at this time;
* management's response to these factors; and
* other risk factors identified 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 speak only as of the dates on which they are made. 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.

Assured Guaranty Ltd.
Equity Investors:
Sabra Purtill, CFA
Managing Director, Investor Relations
212-408-6044
441-299-9375
spurtill@assuredguaranty.com
or
Ross Aron
Associate, Investor Relations
212-261-5509
raron@assuredguaranty.com
or
Fixed Income Investors:
Robert Tucker
Managing Director, Fixed Income Investor Relations
212-339-0861
rtucker@assuerdguaranty.com
or
Michael Walker
Director, Fixed Income Investor Relations
212-261-5575
mwalker@assuredguaranty.com
or
Media:
Betsy Castenir
Managing Director, Corporate Communications
212-339-3424
bcastenir@assuredguaranty.com
or
Ashweeta Durani
Vice President, Corporate Communications
212-408-6042
adurani@assuredguaranty.com

Copyright Business Wire 2009