Bonds News

Fitch cuts "AAA" rating of FGIC insurance unit

NEW YORK, Jan 30 (Reuters) - Fitch Ratings on Wednesday cut its top “AAA” ratings on FGIC Corp’s bond insurance arm, saying the insurer does not have the capital required for a top rating.

Fitch cut FGIC’s “AAA” insurer financial strength rating by two notches to “AA.” It also cut parent company FGIC Corp’s long-term rating by three notches to “A” from “AA,” the third-highest investment grade.

FGIC is owned by a group including mortgage insurer PMI Group Inc PMI.N and private equity firms Blackstone Group BX.N, Cypress Group, and CIVC Partners LP. The group acquired FGIC from General Electric Co GE.N in 2003 for about $2.18 billion. (Reporting by Dena Aubin; editing by Gary Crosse)