MBIA responds to Moody’s statement
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- December
- 6
MBIA Inc., the Armonk-based bond insurer whose stock dropped nearly 16 percent yesterday after a report raised concerns about a possible capital shortfall, said this morning it has been seeking ways to raise money.
But the company noted that Moody’s Investors Service has not reduced its credit ratings.
MBIA shares dropped $5.21 to $27.42 yesterday after an early-afternoon statement from Moody’s said MBIA “is at greater risk of exhibiting a capital shortfall than previously communicated. We now consider this somewhat likely.�
MBIA shares are down 62.5 percent on the year.
“We note Moody’s announcement concerning financial guarantors,� MBIA said in its statment issued on Business Wire. “Contrary to some press reports, Moody’s has not taken any rating actions with respect to MBIA.
“Moody’s indicated that, similar to several other monoline insurers, MBIA is somewhat likely to require additional capital,� MBIA said. “The company believes that maintaining a strong balance sheet and an adequate capital cushion is prudent. Therefore, the company has been pursuing capital contingency plans, even in the absence of any immediate rating agency requirements.“
This entry was posted
on Thursday, December 6th, 2007 at 10:46 am by Allan Drury.
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