by Calculated Risk on 2/07/2008 04:44:00 PM

From Bloomberg: Security Capital's Bond Insurer Loses Aaa at Moody's (hat tip jg)

Security Capital Assurance Ltd.'s bond insurance units, hobbled by a decline in subprime mortgage securities, lost their Aaa credit rating at Moody's Investors Service.

XL Capital Assurance Inc. and XL Financial Assurance Ltd. were cut six levels to A3, New York-based Moody's said today in a statement. The outlook for both is negative, Moody's said.

SCA, based in Hamilton, Bermuda, was stripped of its top ranking at Fitch Ratings last month ...

Also see Deutsche Bank AG Chief Executive Officer Josef Ackermann Says Bond Insurers Threaten Debt `Tsunami' comments today:

Deutsche Bank AG Chief Executive Officer Josef Ackermann said rating downgrades for bond insurers pose risks that could match the U.S. subprime market collapse.

``It could be a tsunami-like event comparable to subprime,'' Ackermann said in a Bloomberg Television interview in Frankfurt today.