FGIC and XLCA Continue to Work with Jefferson County to Solve Debt Crisis

NEW YORK, April 10  /PRNewswire-FirstCall/ -- Financial Guaranty Insurance Company ("FGIC"), a wholly owned subsidiary of FGIC Corporation, and XL Capital Assurance Inc. ("XLCA"), a wholly owned subsidiary of Security Capital Assurance Ltd (NYSE:SCA) (collectively "the bond insurers") today announced that they continue to work with Jefferson County, Alabama, to develop solutions to the County's debt crisis that are not only fiscally and environmentally responsible, but also sensitive to the needs of the ratepayers.

In a joint statement, the bond insurers commented, "FGIC and XLCA are keenly aware of and sympathetic to the issues currently facing Jefferson County and are developing and implementing a potential solution to the crisis the County faces.  To this end, we have engaged a team of local and national experts, including legal, engineering and finance professionals, to work directly with the County Commission and the County's financial and legal advisors to develop a remediation plan that will deliver long-term financial integrity and stability for the sewer system and the County.  We believe that developing a long-term plan that restores the sewer system's financial stability would benefit not only Jefferson County, but also municipal issuers throughout the state of Alabama."

The bond insurers continued, "Though the situation is difficult and complex, our companies are diligently working towards achieving a fair solution for all parties, including Jefferson County's ratepayers and its bondholders.  FGIC and XLCA believe it is in the best interests of all parties to reach an understanding as quickly as possible to avoid the significant and long-term negative consequences that would arise from Jefferson County's failure to pay on its obligations."

The bond insurers continued, "If called upon, FGIC and XLCA will stand behind our unconditional, absolute and irrevocable obligation to pay interest and principal, as scheduled, on the insured Jefferson County warrants as provided under the terms of our financial guarantee insurance policies."

About Financial Guaranty Insurance Company

Financial Guaranty Insurance Company, a wholly owned subsidiary of FGIC Corporation, provides credit enhancement on infrastructure finance and structured finance securities worldwide.

About XL Capital Assurance Inc.

XL Capital Assurance Inc. is a wholly-owned subsidiary of Security Capital Assurance Ltd, a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange (NYSE:SCA).

  FGIC Contact:

  Brian Moore
  [phone]
  

  XLCA Contacts:

  Investors
  Frank Constantinople
  [phone]
  

  Media
  Michael Gormley
  [phone]
  

  Michele Loguidice
  [phone]
  

DATASOURCE: XL Capital Assurance Inc.; Financial Guaranty Insurance Company



CONTACT: Brian Moore, FGIC, [phone], ; or,

XLCA, investors: Frank Constantinople, [phone],

, or media, Michael Gormley, [phone], or

, or Michele Loguidice, [phone],





Web site:  http://www.scafg.com/ 

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