Moody’s trims MBIA notes

Moody’s Investors Service said it downgraded MBIA Corp.’s surplus notes C(hyb) from Ca(hyb). The outlook for MBIA Inc. and MBIA Corp. was changed to stable from negative.

The downgrade considers the view that expected recovery rates of principal and accrued interest on these defaulted securities is likely to be lower than 35%, Moody’s said.

The outlook revision reflects expected improvements in the firm's risk-adjusted capital adequacy as several large exposures mature during 2022, Moody’s said.

“However, Moody's notes that MBIA Corp.'s policyholders' surplus remains just above minimum regulatory levels and the firm's longer-term solvency remains dependent on the outcome of the firm's asset recovery efforts,” the agency said in a press release.

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