Fitch Drops MBIA to AA!
From Forbes,
In the financial sector MBIA (nyse: MBI) made the afternoon headlines, after Fitch Ratings cut its long-term rating to A from AA, dropped its insurer financial strength rating to AA from AAA. The rating agency also said the bond insurer's losses on collateralized debt obligations could reach $4.9 billion, according to TradeTheNews.com.The more influential Moody's and Standard and Poors still have MBI at AAA
The MBIA news appeared to spark the late selling trend that saw the market coast to its mixed finish.David Gaffen at the WSJ says the market didn't react to the news because it is "so last month." Is it? If the two other rating services reluctantly drag their feet to AA also, will the market still say "so last month?" I doubt it!
Meantime, the third largest insurer suffered another cut: Fitch cuts FGIC insured-only municipal ratings to BBB, outlook negative.
Posted by movermike on
Friday April 4, 2008 at 5:57pm
