As announced by Fitch's Insurance Group in a press release earlier today, Fitch has withdrawn its 'AA' IFS rating on MBIA Insurance Corp. (MBIA) and other related entities. Based on that withdrawal, Fitch takes the following actions on MBIA-insured municipal securities:
--Ratings on securities for which Fitch maintains underlying ratings of 'AA' or higher are not affected;
--Ratings on securities for which Fitch maintains underlying ratings lower than 'AA' are revised to their underlying ratings;
--Ratings on securities for which Fitch does not maintain underlying ratings are withdrawn. On variable-rate demand notes (VRDNs), tender option bonds (TOBs) and other municipal structured transactions with MBIA insurance where Fitch withdraws its long-term rating, Fitch will also withdraw its short-term rating.
On transactions where MBIA does not fully guarantee debt service, but supports the issue via a guaranteed investment contract (GIC) or provides a surety policy on a debt service reserve fund, Fitch will maintain its rating, and its analysis will continue to reflect the transaction's key credit characteristics, while also considering the impact of the guarantor's risk profile. This credit analysis of the guarantor may be based on Fitch's internal assessment, other agencies' opinions or other credit views. Some of those transactions may be placed on Rating Watch, pending a possible restructuring of MBIA's participation, a reevaluation of the credit Fitch places on MBIA's obligation, or an analysis of other factors within the transaction.
Spreadsheets that list the MBIA-insured municipal, corporate, and emerging market securities on which Fitch will maintain underlying ratings, as well as those with insured-only ratings that will be withdrawn, are available on the Fitch Ratings web site at www.fitchratings.com under the header:
Public Finance >> U.S. Public Finance >> Special Reports
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
David Litvack, 212-908-0593
Media
Relations:
David Weinfurter, 212-908-0336
