Moody's ups MBIA, National Public

Moody's Investors Service said it upgraded the insurance financial strength ratings of MBIA Insurance Corp. to B3 from Caa2, National Public Finance Guarantee Corp. to Baa1 from Baa2, MBIA UK Insurance Ltd. to B1 from B3, MBIA Mexico SA de CV to B3 from Caa2.

Moody's also upgraded the senior ratings of MBIA Inc., the group's ultimate holding company, to Ba3 from Caa1.

Moody's said the actions reflect the overall positive effect that MBIA's recent settlements with various counterparties have had on the group's credit profile.

The settlement of put-back recoverables owed to MBIA and of claims owed by MBIA related to insured exposures, including risky commercial real estate resecuritizations, under terms broadly consistent with MBIA's reserves, have, in aggregate, improved the group's liquidity profile and reduced the volatility of its insured risk portfolio. Additionally, the bank-led litigation related to the MBIA group's 2009 restructuring was dismissed as part of these settlements, reducing legal risk.

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