S&P Affirms Build America Mutual’s AA Rating and Stable Outlook Under New Methodology
November 22 2019 - 9:32AM
Business Wire
S&P Global Ratings today affirmed its AA rating and stable
outlook for Build America Mutual, the largest municipal-only bond
insurer, recognizing BAM’s “excellent capital and earnings” and
other key strengths in assigning BAM the highest rating S&P
maintains for any active bond insurer. The rating was affirmed
following the adoption of new ratings methodologies for bond
insurance that align the sector with S&P’s ratings for other
insurers.
“We’re pleased that S&P has concluded the process of
bringing all insurers under a common criteria and recognized BAM’s
extraordinary capital strength and unique mutual structure in
affirming our rating,” said BAM Chief Executive Officer Seán W.
McCarthy. “S&P’s new methodology enhances transparency for our
stakeholders and will support the durability of our rating going
forward.”
In a Research Update accompanying the ratings action, S&P
said the rating reflected BAM’s “very strong competitive position,”
“excellent capital and earnings” based on the total assets of the
operating group comprised of BAM and HG Re Ltd., “exceptional”
liquidity, and “prudent underwriting discipline,” reflected by an
insured portfolio with an average rating of “A.”
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 September 30, 2019, BAM has insured more than $65
billion of municipal securities for more than 3,500 municipal
issuers nationwide. Learn more at
http://buildamerica.com/mission/
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version on businesswire.com: https://www.businesswire.com/news/home/20191122005302/en/
Michael Stanton, Head of Corporate Strategy and Communications
212-235-2575; mstanton@buildamerica.com
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