Freddie Mac has ordered American International Group Inc.'s mortgage insurer, United Guaranty Corp., to submit a remediation plan to remain in good standing with the government-sponsored enterprise.
The plan was required after Standard & Poor's Corp. downgraded the Greensboro, N.C., unit's debt to A-plus, from AA-plus, Freddie said Thursday. Before the government rescue of AIG, S&P reduced its financial strength ratings on most AIG operating units, including United Guaranty, by three notches, to A-plus.
United Guaranty had been one of the only two mortgage insurers to have retained double-A financial strength ratings — until recently the level needed to do unfettered business with the GSEs — from all three major rating agencies.
