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July 13, 2023

S&P Global Ratings Affirms BAM’s AA Rating and Stable Outlook — July 2023

S&P Global Ratings has published its full annual report on Build America Mutual and affirmed BAM’s AA rating and Stable outlook, the highest rating S&P assigns to any active bond insurer.

The report recognized BAM’s “excellent capital adequacy with a buffer above its current rating” and the fact that BAM only insures U.S. municipal bonds, noting that “it has a broad presence across the U.S., and is only exposed to lower-risk sectors … We view BAM’s liquidity as exceptional based on the lack of any credit-sensitive liabilities or collateral-posting requirements, as well as the high-quality investment portfolio.”

S&P also commented on current market conditions, noting that “BAM continued to experience strong demand in the insured secondary market, partly because the economics of bond insurance are appealing to institutional investors as a tool for risk mitigation.”  The analysts wrote that they expect the trend towards greater demand for insured municipal bonds to continue in 2023.

The full report can be viewed on BAM’s website.

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.  BAM is the preferred provider of bond insurance for the National League of Cities. Through June 30, 2023, BAM has insured $128 billion of municipal securities and has more than 5,000 municipal issuer-members from 49 states. Learn more at

For more information, please contact:

Michael Stanton, Head of Corporate Strategy and Communications