S&P Global Ratings Affirms BAM’s AA Rating and Stable Outlook
July 29 2021 - 10:00AM
Business Wire
S&P Global Ratings published its full annual analysis of
Build America Mutual and affirmed BAM’s AA rating and stable
outlook, the strongest rating S&P assigns to any active bond
insurer.
S&P’s analysts found that municipal bond investors have
demonstrated “a heightened focus on credit quality, trading value
stability, and market liquidity,” since the second half of 2020,
and that “these factors drive the demand for bonds insured by BAM.”
BAM-insured municipal bond sales increased 27% in the first half of
2021 to a record $9.5 billion, which followed a full-year record
for par insured in 2020.
The report recognized BAM’s “excellent” capital adequacy,
“proven record of credit discipline,” and low-risk portfolio, which
includes only U.S. municipal bonds from issuers who provide
essential public services. BAM “has a broad presence across the
U.S. and its insured exposure represents the lowest risk sectors,
as measured by S&P Global Ratings capital charges,” the agency
said in its report.
“The S&P report recognizes that more investors are utilizing
BAM insurance to preserve value in their portfolios by enhancing
the liquidity and credit quality of their holdings,” said BAM Chief
Executive Officer Seán W. McCarthy. “Our member issuers, in turn,
are able to leverage that broader demand to achieve efficient
capital markets access as they invest in critical infrastructure
nationwide.”
About Build America Mutual
BAM is a mutual bond insurance company operated for the benefit
of its members – the cities, states and other municipal entities
that use BAM’s financial guaranty to lower their cost of borrowing.
BAM is the official provider of bond insurance for the National
League of Cities, and was launched in 2012 with initial capital
provided by subsidiaries of White Mountains Insurance Group, Ltd.
(NYSE:WTM)
Through June 30, 2021, BAM has insured more than $96 billion of
municipal securities in more than 11,000 primary and secondary
market transactions.
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version on businesswire.com: https://www.businesswire.com/news/home/20210729005375/en/
For more information: Michael Stanton, Head of Corporate
Strategy and Communications 212-235-2575;
mstanton@buildamerica.com
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