Analysts at Standard & Poor's Ratings Services say mortgage and bond insurers could be facing losses 20 percent greater than the rating agency had calculated less than a month ago. After plugging new assumptions about losses in subprime loans made from 2005 through 2007 into a model that's used to test insurers' ability to sustain losses, Standard & Poor's found the companies remain adequately capitalized. But losses will be greater than expected in a Dec. 19 report, with the increase in projected losses ranging from 2 percent to 36 percent among the companies evaluated. What's changed are the rating agency's expectations of losses on subprime loans. In their report last month, Standard & Poor's analysts assumed losses of 5.75 percent on subprime loans made in 2005, ...
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