DBRS Comments on Ownership Change at Canada Guaranty (formerly United Guaranty Canada)

DBRS notes that on April 19, 2010, the closing of the acquisition of AIG United Guaranty Mortgage Insurance Company Canada (AIGUG Canada) by a private investor group jointly headed by Ontario Teachers’ Pension Plan and National Mortgage Guaranty Holdings, Inc. was announced. AIGUG Canada has been renamed Canada Guaranty Mortgage Insurance Company (Canada Guaranty or the Company).

Pursuant to the DBRS press release dated January 5, 2010, the Financial Strength rating of the Company’s claims paying ability continues to be A (high) and Under Review with Positive Implications. The resolution of the under review status is expected to occur following a review of the Company’s insurance portfolio and capital adequacy under the new ownership arrangements.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Mortgage Insurance Companies in Canada, which can be found on our website under Methodologies.

This is a Corporate (Financial Institutions) rating.