Industry Maintained Strong Ratings in a Very Tough 2002, S&P Says

Smith, Aaron T.
April 2003
Bond Buyer;4/11/2003, Vol. 344 Issue 31613, p7
Trade Publication
The Standard & Poor Corp. reported that the bond insurance industry of the U.S. maintained its rating strength through 2002 despite a recession, deterioration of collateralized debt obligations portfolios, added investor scrutiny, and a change in the way the rating agencies rate business ceded to reinsurers. �The business model that the bond insurers employed was proven to be a solid business model once again,� said Standard & Poor's director David Veno, author of the report. �They still are strong entities.� Veno said that in 2002, in the wake of headline-dominating corporate scandals, bond insurers faced investors raising questions about business practices, but the guarantee industry held up in the spotlight.


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