Bond insurer MBIA appears to be in a fight for its life after Moody's downgraded the company's credit rating to speculative status.
The decision follows a week of strategic moves in which MBIA sought to protect its solvency by making changes in its bond agreements. Bank of America had announced it wanted to buy the bonds to prevent the changes.
On Wednesday, Moody's downgraded MBIA Insurance Corp. financial strength rating from “B3” to “Caa2,” which translates to poor standing and subject to high credit risk. The parent company, MBIA Inc.'s credit rating dropped from “B2” to “Caa1.”
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