The statement:
Fitch Ratings is withdrawing all of its outstanding ratings on MBIA Inc, MBIA Insurance Corp. (MBIA), and other related entities. Also, Fitch is withdrawing all of its outstanding ratings on Ambac Financial Group, Inc., Ambac Assurance Corp. (Ambac) and other related entities. In addition, Fitch will be withdrawing all ratings based on insurance policies from both MBIA and Ambac’s insurance subsidiaries. Fitch will list ratings of primary obligors for bonds where we maintain coverage.
Today’s action follows decisions by MBIA and Ambac’s managements to cease providing substantive non-public portfolio information used in Fitch’s capital analysis model, to discontinue previous full interactive dialogue with Fitch analysts, and to request withdrawal of Fitch’s ratings.
Many key credit issues have developed recently prompting Fitch’s decision to withdraw MBIA and Ambac’s ratings at this time. Negative rating actions by S&P and Moody’s impact the companies’ business prospects and the companies’ reactive strategic and capital management planning creates a volatile credit variable. In addition, credit risk developments continue and Fitch’s ability to analyze credit strength needs to shift to utilizing public information only.
Fitch will consider reinstating coverage and assigning new ratings based only on public information if there is continuing investor interest. In the interim, Fitch may continue to offer commentary and research on developing credit events at MBIA and Ambac.
Related links:
Ambac, like MBIA, wants Fitch to remove its ratings - FT Alphaville
Monolines and rating agencies: The war of words continues… - FT Alphaville
