Note: We are re-issuing this post after correcting a mistake in the original post that ran yesterday.

As a result of another sign of dwindling confidence about MBIA Incorporated’s (MBI) business prospects, Standard & Poor's (S&P) has downgraded its ratings on the parent company as well as its structured finance insurance arm, MBIA Insurance Corporation. Rating of the parent company has been slashed to “BB-“ from “BB" and its subsidiary MBIA Insurance Corporation’s rating has been slashed to “BB+" from “BBB". The ratings for both the parent and the subsidiary are now below investment grade. The rating agency holds a negative outlook on the ratings, which means that there could be additional downgrades if the company incurs further losses. The rating action follows concerns about the company's exposure to residential mortgage-backed securities and collateralized debt obligations that ...

As a result of another sign of dwindling confidence about MBIA Incorporated’s (MBI) business prospects, Standard & Poor's (S&P) has downgraded its ratings on the parent company as well and its structured finance insurance arm, MBIA Insurance Corporation. Rating of the parent company has been slashed by one notch to “BB+" from “BBB" and its subsidiary MBIA Insurance Corporation’s rating has been slashed by one notch to “BB-“ from “BB." While the parent company’s rating stands at one step below investment grade, the subsidiary’s rating has been reduced to three steps below investment grade. The rating agency holds a negative outlook on the ratings, which means that there could be additional downgrades if the company incurs further losses. The rating action follows concerns about the company's exposure to residential mortgage-backed securities and collateralized debt obligations that it delved into during the heights of credit boom, ...