Fitch to continue MBIA ratings
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- March
- 24
Fitch Ratings said that it will continue rating the financial strength and debt of MBIA Inc., the Armonk-based bond insurer. MBIA sparked controversy earlier this month when it asked Fitch to quit rating the company because of a dispute over Fitch’s methodology.
MBIA has suffered heavy losses stemming from its exposure to subprime mortgages.
“We are disappointed that MBIA has requested that we withdraw our (insurer financial strength) ratings and that they have decided to stop providing us important non-public information about their portfolio,” Stephen W. Joynt, president and chief executive officer of Fitch Ratings, said in a written statement. “While we respect MBIA’s decision not to provide us that information, we trust that they will respect our decision to continue to maintain a rating on MBIA, a company about which many investors are so clearly interested.”
C. Edward Chaplin, chief financial officer of MBIA, said that Fitch may have problems continuing its ratings.
“Due to market developments, we believe that the non-public information currently in Fitch’s possession soon will become out of date, and public information alone will be insufficient to maintain the ratings,” Chaplin said in a written statement.
This entry was posted
on Monday, March 24th, 2008 at 3:10 pm by Jay Loomis.
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