Article: MOODY'S DOWNGRADES MBIA'S RATING TO A2; OUTLOOK IS NEGATIVE

Moody's Investors Service has downgraded to A2,from Aaa, the insurance financial strength ratings of MBIA InsuranceCorporation (MBIA) and its affiliated insurance operating companies. Inthe same rating action, Moody's also downgraded the surplus note ratingof MBIA Insurance Corporation to Baa1, from Aa2, and the senior debtrating of the holding company, MBIA, Inc. (NYSE: MBI) to Baa2, from Aa3. Today's rating action concludes a review for possible downgrade that was initiated on June 4, 2008, and reflects MBIA's limited financialflexibility and impaired franchise, as well as the substantial riskwithin its portfolio of insured exposures and a movement toward moreaggressive capital management ...

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