...Developing Franchise: Green Guarantee Company Ltd (GGC) is a small UK-incorporated monoline financial guarantor, established in 2024, with a mandate to guarantee climate-focused, infrastructure-related senior secured bonds and loans issued by entities in emerging markets. Its exclusive focus on green infrastructure supports its developing competitive position. The rating also reflects fairly high single-risk par concentration, which can reach up to 50% of equity and callable capital, and the long-term nature of guarantees, which can extend to 20 years. GGC's adjusted Insurer Financial Strength (IFS) rating is below the implied IFS 'BBB+' rating, due to Fitch Ratings' company profile assessment, which has a stronger impact on the rating than the weighting would otherwise suggest. Growing Risk Guarantee Portfolio: Fitch expects GGC's guarantee portfolio to feature both 'Medium' and 'High' risk characteristics. GGC targets an average credit quality of 'BB' for its transactions, and we expect...
