Bloomberg News

Bond Insurer Cushions Adequate for Puerto Rico Losses, S&P Says

October 14, 2013

Assured Guaranty Ltd. (AGO:US) and MBIA Inc. (MBI:US)’s municipal insurance unit are sufficiently capitalized for any losses on municipal debt from Puerto Rico and Detroit, according to Standard & Poor’s.

Assured has a capital cushion of $450 million to $500 million against exposure of $5.5 billion and MBIA’s National Public Finance Guarantee Corp. has $350 million to $400 million versus exposure of $5.3 billion, S&P credit analysts Marc Cohen and David Veno in New York wrote in a report dated today. That’s consistent with a BBB rating, or two levels above speculative grade, they wrote.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • AGO
    (Assured Guaranty Ltd)
    • $25.56 USD
    • -0.15
    • -0.59%
  • MBI
    (MBIA Inc)
    • $10.32 USD
    • 0.00
    • 0.0%
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