Fitch Ratings said today that despite infusions of capital, the "AAA" ratings of Armonk, N.Y.-based MBIA Inc. and the bond insurer's financial guaranty subsidiaries were being placed on Rating Watch Negative.
The firm said its rating action follows a decision to update certain modeling assumptions in its ongoing analysis of the financial guaranty industry.
Fitch's action came as Standard & Poor's, examining the effects of the subprime market collapse, said that huge writedowns recorded by Citigroup and other banks may have reduced exposures, but "potentials for additional write-downs cannot be ruled out," especially if the situation for bond insurers continues to deteriorate.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
