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August 1, 2014

Standard & Poor’s Affirms BAM’s AA/Stable Financial Strength Rating

Build America Mutual today announced that Standard & Poor’s has affirmed the company’s financial strength rating at AA, with a stable outlook. The complete Standard & Poor’s analysis can be viewed on BAM’s web site at: http://buildamerica.com/files/BAMSPReport2014.pdf

“S&P’s rating action recognizes BAM’s progress in winning broad acceptance for our guaranty and the inherent strength of our capital model as a mutual insurer, and we look forward to continuing to add issuer members, who use our guaranty to achieve more efficient and lower-cost access to the capital markets,” said Seán W. McCarthy, BAM’s Chief Executive Officer.

“Both our members and municipal bond investors benefit from BAM’s financial strength and unparalleled transparency, which includes publishing Obligor Disclosure Brief credit summaries for every transaction we insure,” Mr. McCarthy said. ODBs can be viewed, free of charge, at https://buildamerica.com/obligor

The Standard & Poor’s report said BAM’s rating reflects the company’s “extremely strong capital adequacy and very strong competitive position.” BAM’s high-quality insured portfolio, in which 85% of the credits are rated A or higher, was also recognized as a credit strength. BAM has no exposure to credits rated below investment grade, including Puerto Rico and other U.S. territories, and its underwriting guidelines include limits on exposure to any single risk, as well as geographic concentration and exposure to credits that could be impacted by natural disasters.

Other factors cited by S&P in support of the rating are BAM’s conservative, low-risk investment strategy; strong enterprise risk-management controls; and veteran management team. S&P has rated BAM AA, which is the highest rating S&P currently assigns to financial guarantors, since it was founded in 2012.

About BAM

Domiciled in New York, 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 sponsored by the National League of Cities. Through July 31, BAM has written more than 1,200 policies, insuring more than $8.9 billion of municipal securities. The present value of the interest savings it has delivered to issuers exceeds $100 million.

For more information, please contact:

Michael Stanton, Head of Corporate Strategy and Communications 212-235-2575; mstanton@buildamerica.com