MBIA bond ratings lowered by Standard & Poor’s
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.