Moody's Places MBIA (MBI) Ratings On Review For Possible Downgrade

Moody's Investors Service has placed the Aaa insurance financial strength ratings of MBIA Insurance Corporation (NYSE: MBI) 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. (senior debt at Aa3), on review for possible downgrade.

Moody's said today's rating action reflects Moody's growing concern about the potential volatility in ultimate performance of mortgage and mortgage-related CDO risks, and the corresponding implications for MBIA's risk-adjusted capital adequacy.

According to Stanislas Rouyer, a Moody's Senior Vice President, "The review of MBIA's ratings will reassess the firm's risk and capital positions, in light of the prospect for worsening performance in the
mortgage market and the inherent volatility in RMBS and ABS CDO exposures."

NOTE: MBIA was down 30% today after Moody's placed the ratings of MBIA rival Ambac (NYSE: ABK) on review for a possible downgrade. Ambac sank 52% today.

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