Item 8.01      Other Events.

           On June 20, 2008, Moody’s Investors Service (“Moody’s”) announced rating actions on Security Capital Assurance Ltd (“SCA”), XL Capital Assurance Inc. (“XLCA”), XL Financial Assurance Ltd (“XLFA”) and XL Capital Assurance (U.K.) Limited (“XLCA-UK”) in which Moody’s downgraded the “A3” insurance financial strength ratings of XLCA, XLFA and XLCA-UK to “B2.” Moody’s further announced that the outlook for the ratings is negative.

           Moody’s also downgraded SCA’s provisional senior debt rating to “(P)Caa3” from “(P)Ba1,” its provisional subordinated debt rating to “(P)Ca” from “(P)Ba2” and its preference share rating to “Ca” from “B3.” In addition, Moody’s downgraded the rating of XLFA’s Twin Reefs Pass-Through Trust to “Caa2” from “Ba1.” Finally, Moody’s announced that, based on current rating agency policy, it will withdraw ratings on certain securities that are guaranteed or “wrapped” by XLCA and XLFA that it had previously rated because XLCA and XLFA have been downgraded below investment grade level and there exists no published underlying rating for such securities.

           In taking the rating actions described above, Moody’s noted that such actions: “reflect[] the company’s severely impaired financial flexibility and the company’s proximity to minimum regulatory capital requirements relative to [Moody’s] estimations of expected case losses.” Moody’s also noted that: “According to Moody’s, the negative outlook on SCA’s ratings reflects continued uncertainty with respect to the amount of losses that will ultimately arise from the company’s insured portfolio and attendant risks that could occur if losses develop adversely, including the potential of regulatory intervention.”

A press release relating to these ratings actions is filed as Exhibit 99.1 to this report and incorporated herein by reference.

Item 9.01      Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is filed herewith:

2