Archive for March, 2014

S&P Upgrades National Public Finance Guarantee and MBIA

March 18, 2014

ARMONK, N.Y.–(BUSINESS WIRE)– MBIA Inc. (NYSE: MBI) today announced that Standard & Poor’s Ratings Services (S&P) has upgraded its financial strength rating on MBIA Inc.’s primary financial guarantee insurance subsidiary, National Public Finance Guarantee Corp. (National), to “AA-” from “A”. At the same time, S&P upgraded the counterparty credit rating of MBIA Inc. to “A-” from “BBB”. The outlook on both companies is stable. S&P’s upgrade of National recognizes its extremely strong capital adequacy position, strong operating performance and expected strong competitive position in the financial guarantee market. The upgrade to MBIA Inc.’s rating reflects S&P’s view that National is its principal source of cash flow for debt service and expense needs.

Commenting on the upgrades, MBIA CEO Jay Brown said, “We’re pleased that S&P has recognized the positive steps we’ve taken to reduce risk and volatility throughout the organization as well as National’s strong financial profile and competitive prospects. With a rating in the double-A range now in hand, National will turn its attention toward executing its business plan and supporting the credit enhancement needs of municipalities across the United States. MBIA Inc.’s single-A minus rating will significantly enhance its financial flexibility and provide us with greater opportunities to reduce holding company leverage over time.”