AA By Design

As a ‘AA’ rated direct monoline financial guarantor, Radian plays a unique role in extending the benefits of credit enhancement to an important, under-served segment of the municipal marketplace.  An insurance policy from Radian enhances the marketability of bond issues by making complex structures simpler to analyze.  We like to say that we take the story out of a story bond.  Our ‘AA’ rating provides additional cost savings to issuers who would otherwise be unable to borrow at interest rates befitting an ‘AA’ entity.  In some cases, the Radian name provides market access to less mature borrowers.  Our guaranty is the same as that offered by the ‘AAA’ rated monoline financial guarantors -- an irrevocable guaranty of timely payment of interest and principal. 

Our focus is on securities that may not qualify for coverage from the 'AAA' financial guaranty insurance companies and segments of the market where we've developed a specialty, such as land-secured transactions, hospitals and private colleges and universities. Bonds insured by Radian are rated AA by Standard & Poor's or Aa3 by Moody's Investors Service.

Radian pioneered the concept of extending credit enhancement to this segment of the market and our commitment remains strong. In 2006, Radian insured over 240 issues for $3 billion in par.  While we participate in nearly all sectors of the market, we specialize in the following areas:

• General obligations
• Utility Systems
• Tax-backed obligations
• Healthcare
• Long-Term Care
• Higher education and private schools
• Land-secured transactions
• Not-for-Profits

To discuss opportunities in public finance, please call Paul Rizzo, Senior Vice President and Manager, Public Finance, +1 212 984.9230, e-mail paul.rizzo@radian.biz or John DeLuca, Senior Vice President, Director of Marketing - Public Finance, +1 212 984.9222, e-mail john.deluca@radian.biz.