PURCHASE, N.Y.--(BUSINESS WIRE)--
MBIA Inc. (NYSE:MBI) (the Company) announced its response to today’s
Research Update from Standard & Poor’s Global Ratings, in which it
placed the ratings of the Company and National Public Finance Guarantee
Corporation (National) on CreditWatch Negative.
Bill Fallon, MBIA’s Chief Operating Officer and National’s Chief
Executive Officer said, “We are disappointed by S&P’s announcement and
do not believe that a rating downgrade of National is warranted.
National’s financial strength is evidenced by $1.7 billion of excess
capital above our estimate of S&P’s AAA requirement. National has also,
in a relatively short period of time, significantly increased its new
business activity, as measured both by insured par amount and
transaction count, as well as the number of intermediaries who have
recommended purchase of National’s guarantees. This market acceptance
has been growing despite an environment where S&P’s rating on National
has been one notch lower than its competitors. The strong trading value
of National’s wrap further attests to the success of National’s
disciplined re-entry into the municipal bond market.” Mr. Fallon added,
“We will continue to work with S&P during its ongoing review to do
everything in our power to maintain National’s AA- credit rating.”
Forward-Looking Statements
The information contained in this press release should be read in
conjunction with our filings made with the Securities and Exchange
Commission. This release includes statements that are not historical or
current facts and are “forward-looking statements” made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,”
“estimate,” “intend,” “will likely result,” “looking forward” or “will
continue,” and similar expressions identify forward-looking statements.
These statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from historical earnings
and those presently anticipated or projected, including, among other
risks and uncertainties, the possibility that the Company will
experience increased credit losses or impairments on public finance
obligations we insure issued by state, local and territorial governments
and finance authorities that are experiencing fiscal stress, the
possibility that MBIA Corp. will have inadequate liquidity to pay claims
as a result of increased losses on certain structured finance
transactions, in particular residential mortgage-backed securities
transactions that include a substantial number of ineligible mortgage
loans, or a delay or failure in collecting expected recoveries, the
possibility that loss reserve estimates are not adequate to cover
potential claims, a disruption in the cash flow from our subsidiaries or
an inability to access capital and our exposure to significant
fluctuations in liquidity and asset values within the global credit
markets as a result of collateral posting requirements, our ability to
fully implement our strategic plan, including our ability to maintain
high stable ratings for National and generate investor demand for our
financial guarantees, deterioration in the economic environment and
financial markets in the United States or abroad, and adverse
developments in European sovereign credit performance, real estate
market performance, credit spreads, interest rates and foreign currency
levels, the effects of governmental regulation, including insurance
laws, securities laws, tax laws, legal precedents and accounting rules;
and uncertainties that have not been identified at this time. These and
other factors that could affect financial performance or could cause
actual results to differ materially from estimates contained in or
underlying the Company’s forward-looking statements are discussed under
the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, which may be updated or
amended in the Company’s subsequent filings with the Securities and
Exchange Commission. The Company cautions readers not to place undue
reliance on any such forward-looking statements, which speak only to
their respective dates. The Company undertakes no obligation to publicly
correct or update any forward-looking statement if it later becomes
aware that such result is not likely to be achieved.
MBIA Inc., headquartered in Purchase, New York is a holding company
whose subsidiaries provide financial guarantee insurance for the public
and structured finance markets. Please visit MBIA's website at www.mbia.com.
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MBIA Inc.
Greg Diamond, 914-765-3190
Investor and Media
Relations
[email protected]
Source: MBIA Inc.