Fitch Withdraws AA IFS Rating on MBIA
Fitch's Insurance Group late last week had withdrawn its 'AA' IFS rating on MBIA Insurance Corp. (MBIA) and other related entities. Based on that withdrawal, Fitch is taking the following actions on MBIA-insured municipal securities:
--Ratings on securities for which Fitch maintains underlying ratings of 'AA' or higher are not affected;
--Ratings on securities for which Fitch maintains underlying ratings lower than 'AA' are revised to their underlying ratings;
--Ratings on securities for which Fitch does not maintain underlying ratings are withdrawn. On variable-rate demand notes (VRDNs), tender option bonds (TOBs) and other municipal structured transactions with MBIA insurance where Fitch withdraws its long-term rating, Fitch will also withdraw its short-term rating.
On transactions where MBIA does not fully guarantee debt service, but supports the issue via a guaranteed investment contract (GIC: 9.46, -0.06, -0.63%) or provides a surety policy on a debt service reserve fund, Fitch will maintain its rating, and its analysis will continue to reflect the transaction's key credit characteristics, while also considering the impact of the guarantor's risk profile. This credit analysis of the guarantor may be based on Fitch's internal assessment, other agencies' opinions or other credit views. Some of those transactions may be placed on Rating Watch, pending a possible restructuring of MBIA's participation, a reevaluation of the credit Fitch places on MBIA's obligation, or an analysis of other factors within the transaction.
Published on June 30, 2008
Are you a retail Agent Looking for a Quote?