Just when it looked like bond insurer MBIA was on the ropes it came through with a settlement that is getting the thumbs up from industry observers.
This week, ratings agencies Standard & Poor's and Moody's gave strong indications they view Monday's announcement of an agreement between the Armonk, N.Y.-based carrier MBIA and Bank of America (BofA) favorably.
S&P raised the financial strength rating of MBIA from "triple-C" to "B," adding the outlook is stable. Moody's says the settlement is credit positive for the group, MBIA Inc., but voiced reservations about exposures held by MBIA Corp., which holds insurance coverage for troubled financial instruments including credit default swaps.
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