NEW YORK (TheStreet) -- Assured Guaranty (AGO) shares are down 11.09% to $24.38 in morning trading on Monday due to the fallout of Puerto Rico Governor Alejandro Garcia Padilla telling the New York Times that the U.S. territory's $72 billion debt was unpayable.
Combined with MBIA (MBI), Assured is liable for up to $9.4 billion of the island's debt.
The exact amount of each companies liability is still being measured, according to Bloomberg.
Puerto Rico Governor Alejandro Garcia Padilla's admission to the New York Times that the country had no means to pay off its debt makes both insurer's stock unbuyable, BTIG analyst Mark Palmer said today, according to Bloomberg.
Palmer lowered his rating for both companies to "neutral" from "buy".
As of March 31 MBIA had about $4.5 billion of par exposure while Assured Guaranty had $4.9 billion of par exposure to Puerto Rico.
MBIA shares are down 15.87% to $7 today.
TheStreet Ratings team rates ASSURED GUARANTY LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ASSURED GUARANTY LTD (AGO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow."