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## 2. Internal Ratings of our Financial Guaranty Net Par Outstanding 

The following table identifies the internal credit ratings we have assigned to our net par outstanding as of December 31, 2012 and 2011: 

<img src='content_image/276428.jpg'>

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(1) Represents our internal ratings estimates assigned to these credits utilizing our internal rating system. See “Risk Management” below. Each rating within a letter category includes all rating grades within that letter category (e.g., an “A” rating includes “A+,” “A” and “A-”). 

## 3. Geographic Distribution of Insured Portfolio 

The following table shows the geographic distribution of our public finance financial guaranty net par outstanding (as a percentage of our total financial guaranty net par outstanding) as of the dates indicated: 

<img src='content_image/276427.jpg'>

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(1) Geographic breakdown of our Escrowed Public Finance is not included as it is not a meaningful assessment of risk associated with such transactions. 

