Business in the Burbs

MBIA credit ratings lowered by Standard & Poor’s

June

Standard & Poor’s cut its credit ratings on Armonk bond insurer MBIA Inc. and two of its business units after citing incresed legal and financial risks facing the company.

The credit rating on MBIA was cut to BB from BB+ because of concerns about potential losses related to home mortgages and other securities, according to a statement from S&P. The ratings on the company’s insurance unit were lowered to BBB from BBB+, and ratings for another unit, National Public Finance Guaranty Corp. dropped to A from AA-.

“The legal challenges that MBIA Inc. faces resulting from its restructruing are in our opinion an impediment to both the business prospects and capital raising efforts of National Public Finance Guaranty,” S&P said.

This entry was posted on Friday, June 5th, 2009 at 3:44 pm by Jay Loomis. You can follow any responses to this entry through the RSS 2.0 feed.
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