Thursday's letter came in a long-running court battle between MBIA
and two banks, Bank of America Corp and Societe Generale, over whether MBIA
's restructuring in 2009 was proper.
still derives more than 80 percent of its revenues from municipal insurance - guaranteeing the payment of principal and interest on bonds sold by state and local governments.
does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made.
On Wednesday, Moody's downgraded MBIA
also announced that it has asked Fitch to continue to rate outstanding debt obligations of MBIA
successfully completes the offering at a level of $1 billion or higher, it will effectively address the existing capital deficiency per Fitch's modeling, and Fitch would expect to affirm all of MBIA
's ratings, including its 'AAA' insurer financial strength Ratings, and assign a Stable Rating Outlook.
If at any time during the next four-to-six weeks, MBIA
is able to obtain further capital commitments and/or put in place reinsurance or other risk mitigation measures, on top of the $1 billion capital commitment the company received from Warburg Pincus, that would help improve MBIA
's Matrix result at an 'AAA' rating stress, Fitch would anticipate affirming MBIA
's ratings with a Stable Rating Outlook.
Eugenio Mendoza, MBIA
managing director and head of new business development in Latin America, noted, "The strength of the capital markets in Mexico has increased demand for financial guarantees over the last few years and MBIA
is committed to supporting Mexico's continuing development.
The ratings of MBIA
Mexico are dependent upon a Net Worth Maintenance Agreement from its parent, MBIA
and a reinsurance agreement where MBIA
Mexico cedes 100% of its underwritten risk and earned premiums to MBIA
in exchange for a ceding commission from MBIA
continues to generate consistent returns, which are expected of established companies in this industry.
The terms of the settlements, under which MBIA
neither admits nor denies wrongdoing, include:
The affirmation follows today's announcement that MBIA
has concluded civil settlements with the Securities and Exchange Commission (SEC), the New York State Attorney General's Office (NYAG), and the New York State Insurance Department (NYSID) with respect to questionable transactions entered into by MBIA
in 1998 following defaults on insured bonds issued by the Allegheny Health, Education and Research Foundation (AHERF).