Seven "triple-A" rated bond insurers have more than enough capital to support their current rating levels, Fitch Ratings has reported.
The New York-based rating agency introduced a new economic capital model known as Matrix, which it will now use in its ratings of financial guaranty insurers, and found that the core capital adequacy ratio–the key output produced by the model–was sufficient for all seven companies.
Each financial guarantor is expected to maintain a minimum CCAR of 1.00 for its given rating threshold, Fitch said. A CCAR in excess of 1.00 means the company holds more capital than required to meet simulated claim payments generated by the Matrix model.
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