And - According to foreign news media, the world's largest bond insurer MBIA Insurance Corp. Local time on Friday announced that it has asked one of the three major U.S. rating agency Fitch (Fitch Ratings) the revocation of the insurer financial strength ratings of six, Which includes bond insurer MBIA companies.
It is learnt that the Fitch international rating that is still under review whether the lower MBIA bond insurance AAA rating. At the same time, Moody's Investors Service Company (Moody's Investors Service Inc.) And the Standard & Poor's (Standard and Poor's) will also be reduced in other mortgage-related investment rating.
MBIA spokesman Willard Hill, the Fitch ratings strength "is not" the avoidance of a factor. Before, MBIA Fitch had asked the company issued more than 1.1 billion U.S. dollars unsecured bond rating. MBIA in a statement that the ratings of Fitch procedures "in many important areas to be different from other rating agencies, which will affect investors assessed value, especially in periods of economic instability, brought about by such a different impact on Become very important, an increase of the risk of misjudgment. "This speech, Fitch international rating in response to Friday Road, on the request to revoke MBIA rating, and Fitch ratings and cost analysis of the criticism, we are very disappointed. Fitch Ratings, president and CEO of RU Waen (Stephen Joynt) issued a statement saying that "our ratings are high-quality analysis, we understand MBIA municipal bond insurance and structured finance business."
Fitch Ratings said that it can not determine the future continue to conduct insurer MBIA financial strength ratings, because without the right to use the insured on the details of rating will become very difficult, these documents is not external open to the public.
If they lose the AAA bond rating of insurance business, MBIA it will be difficult to win a good performance. To meet the Fitch ratings of AAA capital requirements, MBIA will be forced investors to sell municipal bonds, and therefore once again involved in the credit market crisis. MBIA in the secondary mortgage-backed securities products after a major loss, MBIA raised 2.6 billion U.S. dollars of capital to help ensure that its AAA bond rating of the insurance business. MBIA also made in these efforts to avoid the Moody's Investors Service and Standard & Poor's lowered its rating. However, Moody's Investors Service and Standard & Poor's future still on the ratings of MBIA said "negative."
Last month, MBIA the new chief executive Joseph "Jay" Brown said, he plans to split the next five years the municipal bond insurance and structured finance business. Hill also said, "We do not believe that the Fitch rating model and the allocation of capital in line with our objectives, our goal is to municipal bond insurance and structured finance business to split open." Hill said, since 2005, Fitch Rating on an increase of three times the cost of expenses, can provide insurance financial strength ratings.
It is learnt that the Fitch international rating that is still under review whether the lower MBIA bond insurance AAA rating. At the same time, Moody's Investors Service Company (Moody's Investors Service Inc.) And the Standard & Poor's (Standard and Poor's) will also be reduced in other mortgage-related investment rating.
MBIA spokesman Willard Hill, the Fitch ratings strength "is not" the avoidance of a factor. Before, MBIA Fitch had asked the company issued more than 1.1 billion U.S. dollars unsecured bond rating. MBIA in a statement that the ratings of Fitch procedures "in many important areas to be different from other rating agencies, which will affect investors assessed value, especially in periods of economic instability, brought about by such a different impact on Become very important, an increase of the risk of misjudgment. "This speech, Fitch international rating in response to Friday Road, on the request to revoke MBIA rating, and Fitch ratings and cost analysis of the criticism, we are very disappointed. Fitch Ratings, president and CEO of RU Waen (Stephen Joynt) issued a statement saying that "our ratings are high-quality analysis, we understand MBIA municipal bond insurance and structured finance business."
Fitch Ratings said that it can not determine the future continue to conduct insurer MBIA financial strength ratings, because without the right to use the insured on the details of rating will become very difficult, these documents is not external open to the public.
If they lose the AAA bond rating of insurance business, MBIA it will be difficult to win a good performance. To meet the Fitch ratings of AAA capital requirements, MBIA will be forced investors to sell municipal bonds, and therefore once again involved in the credit market crisis. MBIA in the secondary mortgage-backed securities products after a major loss, MBIA raised 2.6 billion U.S. dollars of capital to help ensure that its AAA bond rating of the insurance business. MBIA also made in these efforts to avoid the Moody's Investors Service and Standard & Poor's lowered its rating. However, Moody's Investors Service and Standard & Poor's future still on the ratings of MBIA said "negative."
Last month, MBIA the new chief executive Joseph "Jay" Brown said, he plans to split the next five years the municipal bond insurance and structured finance business. Hill also said, "We do not believe that the Fitch rating model and the allocation of capital in line with our objectives, our goal is to municipal bond insurance and structured finance business to split open." Hill said, since 2005, Fitch Rating on an increase of three times the cost of expenses, can provide insurance financial strength ratings.
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