MBIA Inc. Responds to S&P Placing National’s Rating on CreditWatch Negative
June 06 2017 - 6:07PM
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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version on businesswire.com: http://www.businesswire.com/news/home/20170606006692/en/
MBIA Inc.Greg Diamond, 914-765-3190Investor and Media
Relationsgreg.diamond@mbia.com
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