Tags: S&P | upgrade | MBIA | Assured

S&P Upgrades MBIA, Assured; Shares Jump

Tuesday, 18 Mar 2014 07:09 PM

Shares of MBIA Inc. and Assured Guaranty Ltd. jumped Tuesday after Standard & Poor’s lifted the bond insurers’ credit ratings.

MBIA, whose grade improved to A- from BBB, gained as much as 6.7 percent, with S&P citing the potential success of its National Public Finance Guarantee unit. Assured rose as much as 5 percent after the ratings firm said its “competitive position remains strong relative to peers” in a separate report that boosted the ratings to AA from AA-.

MBIA and Assured are the leading companies still seeking to insure municipal bonds after rivals suffered losses on guarantees of subprime-mortgage-backed debt they’d backed in an expansion of the business.

The new MBIA rating “will significantly enhance its financial flexibility and provide us with greater opportunities to reduce holding-company leverage over time,” Chief Executive Officer Jay Brown said today in a statement. Dominic Frederico, CEO of Hamilton, Bermuda-based Assured, said in a separate statement the company was pleased that S&P has “recognized the strength of our competitive position.”

MBIA shares ended the day up 3.2 percent at $14.64, while Assured rose 4.6 percent to $26.65.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
InvestingAnalysis
Shares of MBIA Inc. and Assured Guaranty Ltd. jumped Tuesday after Standard & Poor's lifted the bond insurers' credit ratings.
S&P,upgrade,MBIA,Assured
184
2014-09-18
Tuesday, 18 Mar 2014 07:09 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved