Bond Insurers Face Rating Threat

Washington Post (06/05/08) P. D2
Ambac and MBIA could see their AAA ratings lowered by Moody's Investors Service, as rising mortgage defaults hit bond insurers hard. The downgrades could inflate city and county borrowing costs, making things difficult for municipalities at a time when tax revenue has decreased. In response to the possibility of an increase in claims, bond insurers have taken steps to generate capital and boost loss reserves.