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After S&P Downgrade, MBIA to Stop Seeking New Business

Bond insurer MBIA (MBI) said Wednesday that it has decided not to attempt to insure more bonds after its credit rating was downgraded two notches by S&P Global Ratings last month.

The firm quickly cut jobs after the downgrade, but still saw no way to operate profitably after its rating was lowered. Bond insurers have to rated higher than municipalities for the insurance to add any value.

Bill Fallon, CEO, National Public Finance Guarantee Corporation, the MBIA subsidiary that was insuring new bonds, released a...