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Actionable news in MBI: MBIA Inc,

‘Unshackled’ from Rating Agencies, MBIA Seems Ready to Return Capital to Shareholders

Shares of bond insurer MBIA (MBI), which saw its business plans torpedoed by a two-notch credit rating downgrade late last month, were rising Wednesday after management indicated some shareholder-friendly moves are coming, even as it had to increase accounting for Puerto Rico-related losses.

In a letter to shareholders sent late Tuesday, MBIA's CEO Jay Brown and President & COO Bill Fallon wrote:

As we no longer have the primary objective of maintaining a specific rating on our operating company, we are unshackled from most of the limitations imposed by the rating agencies.

The stock was up 3.34% to $9.90 by 11 a.m. ET after some positive analysts comments.

MKM Partners Harry Fong suspects a special dividend may be in the offing. He wrote Wednesday:

The company is still...