Oct. 9 at 7:23 PM
Moody’s Ratings downgraded MBIA Insurance Corporation’s insurance financial strength rating to Caa3 from Caa2, revising the outlook to stable from negative.
In the same action Thursday, Moody’s affirmed the Ba3 senior unsecured debt rating of MBIA Inc. and the Baa3 insurance financial strength rating of National Public Finance Guarantee Corporation, while revising both outlooks to negative from stable.
The downgrade of MBIA Corp. reflects its strained liquidity, declining cash and invested assets, and significant write-downs in recoverable salvage assets in recent years. The company reported statutory cash and investments of
$154 million in the first half of 2025, with only
$34 million immediately available.
MBIA Corp.’s policyholders’ surplus stands just
$22 million above New York’s minimum regulatory threshold, leaving the company vulnerable to further deterioration in its insured portfolio. Its long-term solvency hinges on the outcome of asset recovery efforts.
$MBI