CHRONOLOGY-Bond insurers’ credit ratings
Traditionally focused on insuring municipal deals, bond
insurers got into trouble after they ventured into structured
products to boost returns.
Massive delinquencies on U.S. subprime mortgages battered
the credit quality of these products, increasing the capital
that bond insurers need to maintain their crucial “AAA”
ratings.
As bond insurers’ ratings are downgraded, so are ratings on
much of the debt they insure, forcing sales by some investors
who can only own top-rated securities. The loss of a top “AAA”
rating also undercuts the value of bond insurance, making it
difficult for the companies to win business.
Following is a chronology of recent ratings actions on bond
insurers and ratings still under review for possible
downgrades:
MBIA Inc’s (MBI.N: Quote, Profile, Research) MBIA Insurance Corp
Feb. 26 - Moody’s removes Aaa rating from review for
downgrade, assigns negative outlook.
Feb. 25 - S%26amp;P removes AAA rating from review for
downgrade, assigns negative outlook.
Feb. 5 - Fitch puts AAA rating on review for downgrade.
Jan. 31 - S%26amp;P puts AAA rating on review for downgrade.
Jan. 17 - Moody’s puts Aaa rating on review for downgrade.
Jan. 16 - Fitch affirms AAA rating with stable outlook.
Dec. 19 - S%26amp;P changes outlook on AAA rating to negative
from stable.
Dec. 14 - Moody’s affirms Aaa rating, changes outlook to
negative from stable.
Ambac Financial Group’s (ABK.N: Quote, Profile, Research) Ambac Assurance Corp
Mar. 12 - S%26amp;P removes AAA rating from review for
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