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MBIA bond ratings lowered by Standard & Poor’s

June
15

MBIA Inc., the Armonk-based bond insurer that suffered heavy losses as the housing bubble collapsed, had the ratings on 11 insurance-backed bond issues downgraded by Standard & Poor’s Ratings Services. The drop in the bond rating to BBB from BBB+ reflected the recent drop in the financial strength rating of MBIA’s insurance subsidiary, according to Standard & Poor’s.

MBIA was hit hard last year, as the weakest housing market since the early 1970s resulted in large numbers of homebuyers defaulting or falling behind on their mortgage payments. As home foreclosures soared, MBIA took big write-downs on the mortgage bonds that it had insured.

This entry was posted on Monday, June 15th, 2009 at 2:38 pm by Jay Loomis. You can follow any responses to this entry through the RSS 2.0 feed.
Category: Credit

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Business in the Burbs is our online news blog about businesses based or operating in the Lower Hudson Valley. Visitors here will also find items of interest to consumers in the region. Most contributions are from business reporters and editors covering Westchester, Rockland and Putnam counties.

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