FGIC Gets Negative Watch from Fitch

Fitch Ratings has placed its 'AAA' long-term rating on FGIC Corp., the parent of Financial Guaranty Insurance Co., on negative watch because of potential losses the bond insurer may suffer from mortgage-related exposures. FGIC is more than $1 billion short of the capital needed to keep its top rating, Fitch said. FGIC, which is partly owned by The Blackstone Group, has responded to the ratings agency's decision by stating that it has developed, and is actively pursuing, a comprehensive plan to enhance its capital resources. The insurance holding company added that the plan is intended to satisfy Fitch's triple-A capital requirements, as well as those of Moody's Investors Service and Standard & Poor's. www.fgic.com