The chief executive of MBIA has written to reassure investors that there is little probability of the firm going into default despite its request that Fitch Ratings no longer rate the firm's financial strength.
Jay Brown, chairman and chief executive officer of the Armonk, N.Y.-based bond insurer, wrote his letter to investors on Sunday. On Friday, MBIA had written Fitch asking it to drop the rating. That letter criticized Fitch's rating methodology and fees.
In the wake of the letter to Fitch, MBIA on Friday, after the markets closed, released a statement announcing that it requested immediate withdrawal from Fitch rating its insurer financial strength while continuing the rating of outstanding debt obligations.
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