Posted By Pete Hill
Standard & Poor's Ratings Services cut its ratings on MBIA Inc.'s (MBI) insurance unit to junk status, saying the weak economy continues to contribute to losses on the group's structured finance products.
Shares fell 3.5% to $7.95 in after-hours trading. The stock has doubled this year but is still down 40% from a year ago.
Credit analyst Damien Magarelli said losses on MBIA's residential mortgage-based securities and collateralized debt obligations of asset-backed securities issued from 2005 through 2007 could be higher than S&P had expected.
"However, the downgrade also reflects potentially increased losses in other asset classes, including but not limited to CMBS (commercial mortgage-backed securities) and - for other years prior to 2005 - within RMBS," he added.
Click here to read more
Standard & Poor's Ratings Services cut its ratings on MBIA Inc.'s (MBI) insurance unit to junk status, saying the weak economy continues to contribute to losses on the group's structured finance products.
Shares fell 3.5% to $7.95 in after-hours trading. The stock has doubled this year but is still down 40% from a year ago.
Credit analyst Damien Magarelli said losses on MBIA's residential mortgage-based securities and collateralized debt obligations of asset-backed securities issued from 2005 through 2007 could be higher than S&P had expected.
"However, the downgrade also reflects potentially increased losses in other asset classes, including but not limited to CMBS (commercial mortgage-backed securities) and - for other years prior to 2005 - within RMBS," he added.
Click here to read more
No comments:
Post a Comment