UPDATE - UBS Downgraded Assured Guaranty (AGO) to Neutral; Concerns on Possible Moody's Cut

UPDATE - UBS downgraded Assured Guaranty (NYSE: AGO) from Buy to Neutral. PT slashes from $28 to $18.

Analyst, Brian Meredith, said, "Given the reasons cited by Moody’s for its review for possible downgrade of AGO’s operating subsidiaries, we believe it is highly probable that Assured’s Moody’s ratings will slip into the single-A category. In the case of a downgrade, new-business opportunities would likely be limited, and AGO would likely pursue alternative paths to bolster production. As a result, capital management would likely be moderate in the near term as the company works to maintain its AA-minus ratings from S&P. Expected completion of the Moody’s review is by the end of 2Q12."

To see more ratings changes on AGO, Click Here

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