Assured Guaranty plummets 49% on analyst downgrade, Moody’s credit concerns

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Bond insurance holding company Assured Guaranty Ltd. (NYSE:AGO) is sinking 49% today after analysts at J.P. Morgan downgraded the Bermuda-based company ahead of the opening to “neutral” from “overweight.” Also before the bell, Moody’s Investors Service said it may slash Assured’s Aaa rating on worries about future demand for bond insurance.

“We are concerned by Moody's announcement at a time when Assured is experiencing broad market acceptance and investor demand for our insured paper,” said Dominic Frederico, president and CEO, in a statement. “We believe it is important for investors to know that Moody's action is not at all reflective of a deterioration in Assured's capital base, credit exposures or earnings outlook.”

In today’s trading, shares of Assured Guaranty are at $9.61 at 10:22 a.m. ET, down $9.14 from Monday’s close. Trading volume is at more than 10.7 million shares, well above the average of 2.7 million shares.

For detailed price information and recent news stories about Assured Guaranty Ltd., click AGO.