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MOODY'S RATES MBIA ASSURANCE S.A. CLAIMS-PAYING ABILITY 'Aaa'; MBIA INC. OPENS A SUBSIDIARY IN FRANCE

 MOODY'S RATES MBIA ASSURANCE S.A. CLAIMS-PAYING ABILITY 'Aaa';
 MBIA INC. OPENS A SUBSIDIARY IN FRANCE
 NEW YORK, Nov. 26 /PRNewswire/ -- Moody's Investors Service today announced that it has assigned a "Aaa" claims-paying ability rating to MBIA Assurance S.A.
 MBIA Assurance S.A. is currently a subsidiary of MBIA Inc. (holding company) and will become a subsidiary of Municipal Bond Investors Assurance Corporation (MBIA Corp.) prior to year end. MBIA Corp. is a municipal bond insurance company whose claims-paying ability is rated "Aaa." MBIA Assurance S.A. was licensed to underwrite financial guaranty business in France in 1990. Key factors in the rating decision were a net worth maintenance agreement, which obligates MBIA Corp. to maintain predetermined capital levels for MBIA Assurance S.A., and a reinsurance agreement, stipulating that MBIA Assurance S.A. will cede and MBIA Corp. will assume 90 percent of the gross liability underwritten by MBIA Assurance S.A. In addition, underwriting decisions will be made by a joint committee of MBIA Assurance S.A. and MBIA Corp.
 Daniel Heimowitz, executive vice president and director of the public finance department, commented, "This approach is a prudent one which has enabled MBIA Corp., a U.S. monoline insurance company, to explore opportunities in the European markets. MBIA Corp. has effectively substituted its credit for that of MBIA Assurance S.A. while assessing a growing market. Moody's will accord MBIA Assurance S.A. the same level of review that is currently used for MBIA Corp. Each transaction to be underwritten by MBIA Assurance S.A. will be analyzed by Moody's in order to assess the risk to MBIA Assurance S.A."
 -0- 11/26/91
 /CONTACT: William deSante, 212-553-0353, or Naomi Richman, 212-553-0014, both of Moody's/
 (MBI) CO: MBIA Assurance S.A.; MBIA Corp. ST: New York IN: LEI SU: RTG


GK-CK -- NY023 -- 7200 11/26/91 10:12 EST
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Publication:PR Newswire
Date:Nov 26, 1991
Words:313
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