Moody's Downgrades FGIC

Updated from 3:41 p.m. EST

Moody's Investors Service on Thursday was showing no love for Financial Guarantee Insurance Co., downgrading the troubled bond insurer to A3 from triple-A.

The closely-held company, whose investors include the Blackstone Group(BX Quote), has suffered along with rivals MBIA(MBI Quote) and Ambac Financial(ABK Quote), as the ratings agencies grow increasingly wary of their ability to guarantee the debt they insure.

"These rating actions reflect Moody's assessment of FGIC's meaningfully weakened capitalization and business profile resulting, in part, from its exposures to the U.S. residential mortgage market," Moody's said in a press release announcing the downgrade. ...