MBIA is now officially in ‘junk’ status.
MBIA Inc – S&P cuts counter-party credit, financial strength and financial enhancement ratings on MBIA Insurance by 2 notches to BB+ (now junk) from BBB;Â Outlook is Negative- Also, S&P cut the counterparty credit rating for MBIA Inc by 1 notch to BB- from BB
- S&P affirmed its ”A” counter-party credit, financial strength, and financial enhancement ratings on MBIA affiliate National Public Finance Guarantee Corp. (National).
- S&P cites the fact that macroeconomic conditions continue to contribute to losses on the group”s structured finance products.
And how did the market take the news that MBIA is now ‘junk’? It was up 10% today… Keep drinking that kool-aid folks, it will catch up to you.
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More on this topic
(What's this?)
MBIA’s CDO Misadventures Continue (Commercial Real Estate Edition)
(naked capitalism, 9/30/09)
Bruce Berkowitz's Fairholme Capital Starts MBIA Position, Raises AIG Stake
(market folly, 7/13/10)
(MBI) MBIA’s Credit Ratings Slashed to Sub-Investment Grade
(Stock Blog Hub, 9/30/09)
