Article: MBIA Comments on Moody's May 12, 2008 U.S. Subprime Second Lien RMBS Rating Actions Update, and Potential Impact on Financial Guarantor Ratings.

ARMONK, N.Y. -- MBIA (NYSE:MBI) learned yesterday with the market that Moody's is again revising its assumptions on 2005-2007 vintage subprime second lien mortgage products and their potential impact on financial guarantors.

While it is unclear what impact, if any, the revised assumptions may have on MBIA, we believe that there are significant differences between subprime second lien pools referenced in Moody's report and the prime second lien securitizations we have guaranteed. As we discussed on our earnings call on Monday, May 12, we have modeled our portfolio on a deal by deal basis using issuer specific data and we are comfortable with the resulting loss ...

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