Assured Guaranty reaches agreement on Puerto Rico clawback credits

Assured Guaranty Municipal Corp (AGM) and Assured Guaranty Corp (AGC) have reached an agreement in principle to settle their insured exposure to Puerto Rico Highway and Transportation Authority and other Puerto Rico clawback credits.

AGM and AGC reached the agreement with the Financial Oversight and Management Board for Puerto Rico on a framework to settle the exposures. Both subsidiaries of Assured Guaranty extended their right to withdraw from the Puerto Rico General Obligation (GO) and Public Buildings Authority (PBA) Plan Support Agreement (GO and PBA PSA).

Assured Guaranty stressed it “supports the GO and PBA PSA as part of a comprehensive solution that also addresses related Puerto Rico credits, including the Highway and Transportation Authority bonds and Convention Center District Authority bonds, in a manner that respects Assured Guaranty’s legal rights and achieves the ultimate goal of bringing the Title III process to a fair and expeditious conclusion.”