BOSTON (Thomson Financial) - MBIA Inc. Monday released a letter to its shareholders explaining that it requested a withdrawal of Fitch Ratings Services' financial strength (IFS) ratings, saying the value of the IFS ratings from Fitch were 'limited at this time,' because every MBIA investor has the 'benefit of transaction-level credit analysis' from either or both Moody's and Standard & Poor's.
'Of equal importance in today's environment, the impact of even a hint of change in Fitch's IFS ratings for MBIA causes serious volatility in terms of how our company is view in the equity markets, collateralized debt markets and the reputation of our firm,' the Armonk, N.Y.-based bond insurer added.
The company also noted that it has decided to exit the credit derivatives business from its insurance companies and that it has begun to write some business in the new issue market.
After market close Friday, MBIA requested immediate withdrawal of the insurer financial strength ratings assigned by Fitch on MBIA and its insurance subsidiaries.
The stock closed at $11.99 Friday, down nearly 36% year-to-date. Greg Saulnier gs/tk1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'Of equal importance in today's environment, the impact of even a hint of change in Fitch's IFS ratings for MBIA causes serious volatility in terms of how our company is view in the equity markets, collateralized debt markets and the reputation of our firm,' the Armonk, N.Y.-based bond insurer added.
The company also noted that it has decided to exit the credit derivatives business from its insurance companies and that it has begun to write some business in the new issue market.
After market close Friday, MBIA requested immediate withdrawal of the insurer financial strength ratings assigned by Fitch on MBIA and its insurance subsidiaries.
The stock closed at $11.99 Friday, down nearly 36% year-to-date. Greg Saulnier gs/tk1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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