MBIA's AAA Rating Downgraded by Fitch | |
astrolabe (OP) User ID: 408130 United States 04/04/2008 04:39 PM Report Abusive Post Report Copyright Violation | And this from Chris Laird at Prudent Squirrel. Wasayo ******************* Fitch just downgraded MBIA to AA on financial strength "April 4 (Bloomberg) -- Fitch Ratings cut MBIA Inc.'s insurance rating to AA from AAA, saying the bond insurer no longer has enough capital to warrant the top ranking. MBIA, the world's largest bond insurer, would need as much as $3.8 billion more in capital to deserve an AAA, New York- based Fitch said today in a report. The outlook is negative, Fitch said. Fitch issued the new, lower rating even though Armonk, New York-based MBIA asked the ratings company last month to stop assessing its credit worthiness. The two companies disagree over how much capital MBIA needs to absorb losses on the bonds it insures. ``It will be difficult for MBIA to stabilize its credit trend until the company can more effectively limit the downside risk'' from collateralized debt obligations, Fitch said in the report. MBIA's long-term rating was cut to A from AA, Fitch said. ..." [link to www.bloomberg.com] Chris [link to www.prudentsquirrel.com] |