Security Capital Assurance Ltd. (SCA) has confirmed Moody's Investor Services downgraded the insurance financial strength (IFS) ratings of SCA's subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd., as well as XLCA subsidiary, XL Capital Assurance (UK) Ltd.

The following rating actions were taken by Moody's today on SCA operating companies:

XL Capital Assurance Inc. - IFS from A3 to B2, outlook is negative;

XL Capital Assurance (U.K.) Ltd. - IFS from A3 to B2, outlook is negative; and

XL Financial Assurance Ltd. - IFS from A3 to B2, outlook is negative.