MBIA muni insurer rating boosted; stock jumps

|About: MBIA Inc. (MBI)|By:, SA News Editor

S&P lifts the rating on MBIA's (MBI +3.9%) National Public Finance Guarantee to AA- from A, "reflecting our view of the company's prospective strong business risk profile and strong financial risk profile, based on our belief that the company will have a strong competitive position and strong operating performance, as well as its current extremely strong capital adequacy position."

S&P expects National "will begin writing business with favorable pricing characteristics as it demonstrates good operating performance and profitability."

A major catalyst awaited by MBIA's bulls and company management has been S&P boosting National to the AA rating necessary for the unit to get into the profitable business of writing insurance again.