News

Kroll Bond Rating Agency Assigns
Positive Outlook to Fidus Re Series 2021-1

 Affirms AA Rating on Series 2018-1 and 2022-1 Notes

NEW YORK, March 19, 2024 – Kroll Bond Rating Agency assigned a positive outlook to its AA rating on Fidus Re’s $150 million Series 2021-1 Notes (Fidus II), and affirmed its AA+ rating on Fidus Re’s $100 million Series 2018-1 Notes (Fidus I) and AA rating on Fidus Re’s $150 million Series 2022-1 Notes (Fidus III).

The transactions were sold to fund collateralized excess-of-loss reinsurance agreements that provide additional claims-paying resources for Build America Mutual.

Kroll said the improved outlook for Fidus II “reflects actual amortization of the financial guarantee portfolio at a rate which exceeds the scheduled amortization, in combination with the credit characteristics of the insured portfolio such that the likelihood or probability that modelled stress losses on the insured credit risks will exceed the attachment point has decreased.”

BAM has paid no losses on the credits covered by the Fidus agreements or any other insured exposures.

About Build America Mutual

BAM is a mutual bond insurance company operated for the benefit of its members – the cities, states, and other municipal entities that use BAM’s financial guaranty to lower their cost of borrowing – and  BAM is the preferred provider of bond insurance for members of the National League of Cities. As of December 31, 2023, there were more than $100 billion of BAM-insured municipal bonds outstanding for more than 5,300 member-issuers.

For more information, please contact:

Michael Stanton, Head of Corporate Strategy and Communications

212-235-2575; mstanton@buildamerica.com