Moody's Places MBIA's (MBI) Aaa Rating Under Review for Downgrade

Moody's Investors Service has placed the Aaa insurance financial strength ratings of MBIA Insurance Corporation and its affiliated insurance operating companies on review for possible downgrade. In the same rating action, Moody's also placed the surplus note rating of MBIA Insurance Corporation (Aa2-rated) and the ratings of the holding company, MBIA, Inc. (NYSE: MBI) (senior debt at Aa3), on review for possible downgrade.

Today's rating action reflects Moody's growing concern that MBIA's credit profile may no longer be consistent with current ratings given the company's diminished new business prospects and financial flexibility, coupled with the potential for higher expected and stress losses within the insurance portfolio. Moody's noted that the most likely outcome of the ratings review would be a downgrade, with MBIA's insurance financial strength rating likely to fall within the Aa range, although a downgrade to the single-A rating category is also possible.

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