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Fitch Affirms MBIA At 'AAA'.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 10, 2001

Fitch affirms the 'AAA' insurer financial strength rating of MBIA Insurance Corp. (MBIA).

MBIA is the largest guarantor of municipal bonds, collateralized debt obligations (CDOs), asset- and mortgage-backed bond securities (ABS/MBS), and international project financings. MBIA's rating reflects the company's substantial capital resources, conservative underwriting standards, experienced management team, low- risk investment guidelines, and diversified book of business. Holding company subsidiaries provide guaranteed investment agreements, revenue and audit services to public service clients, and investment management services for local governments, school districts, institutions, and high net worth individuals. At March 31, 2001, MBIA had net insured par in force of $435 billion, supported by total claims-paying resources of $9.3 billion, including $4.6 billion of qualified statutory capital.

MBIA's holding company, MBIA Inc., is 100% publicly owned. Its return on equity (ROE) was 13.7% in 2000, a substantial increase from 8.8% in 1999, when MBIA Inc. took a $102 million writedown in a non-financial guaranty subsidiary and a one-time $153 million increase in its bond insurance general loss reserve based on revised internal loss reserving guidelines. MBIA underwrites all insured obligations to an investment-grade standard. Its insured portfolio is well diversified by sector and geographic region. MBIA's high-quality investment portfolio is invested almost exclusively in high-quality fixed-income instruments, and there is ample liquidity from operating cash flow, short-term investments, and revolving credit lines to pay potential unexpected claims. Under an economic stress test simulating a severe economic downturn, MBIA has sufficient resources to pay all claims and maintain a viable business once conditions normalize.

For a report on MBIA Insurance Corp., please see Fitch's web site at
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Publication:Business Wire
Date:Jul 10, 2001
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