Looking for a trading vehicle in the possible sub-prime rebound
SCA is a very "High Risk" trading vehicle
Form 8-K for SECURITY CAPITAL ASSURANCE LTD
6-Mar-2008
Other Events
Item 8.01 Other Events.
On March 4, 2008, Moody's Investors Service ("Moody's") announced rating actions on Security Capital Assurance Ltd ("SCA"), XL Capital Assurance Inc.
("XLCA"), XL Financial Assurance Ltd ("XLFA") and XL Capital Assurance (U.K.)
Limited ("XLCA-UK"), as well as on certain Moody's-rated securities that are guaranteed or "wrapped" by XLCA, XLFA and XLCA-UK. Moody's placed the "A3" insurance financial strength ratings of XLCA, XLFA and XLCA-UK on review for possible downgrade. Moody's placed SCA's "(P)Baa3" senior debt rating, its "(P)Ba1" subordinated debt rating and its "Ba2" preference shares rating on review for possible downgrade. In addition, the "Baa2" rating of XLFA's Twin Reefs Pass-Through Trust was placed on review for possible downgrade. Finally, the "A3" rating of Moody's-rated securities that are guaranteed or "wrapped" by XLCA, XLFA and XLCA-UK, except those securities with higher public underlying ratings of "A3" or higher, were also placed on review for possible downgrade.
In taking the rating actions described above, Moody's noted that: "This rating action was prompted by SCA's recent SEC filing which stated that the company was delaying the filing of its 2007 Form 10-K and that the company's independent auditor is evaluating the need to include a going concern explanatory paragraph in its audit opinion with respect to SCA's audited financial statements for the year ended December 31, 2007." Moody's also noted that: "According to Moody's, the ratings review will focus on developments related to the potential issuance of a going concern explanatory paragraph by SCA's auditor, as well as additional details related to SCA's capital plans and strategic direction."
surf's up......crikey
