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MBIA ASSURANCE INSURES INDUSTRY'S FIRST BOND ISSUE FOR FRENCH LOCAL AUTHORITY

 ARMONK, N.Y., June 8 /PRNewswire/ -- MBIA Corporation (NYSE: MBI), the leading insurer of municipal bonds in the United States, announced today that the company's French subsidiary, MBIA Assurance S.A., insured its first bond issue for a French local authority. The transaction marks the first time a monoline financial guarantor has insured a government bond issue in France.
 MBIA Assurance guaranteed principal and interest payments on FF 100 million ($18.7 million) of variable-rate bonds issued by the Departement du Nord to finance general infrastructure improvements. By virtue of MBIA Assurance's guarantee, the Departement du Nord bonds will be rated Triple-A by Moody's Investors Service and Standard & Poor's Corporation.
 The Departement du Nord, one of the largest departments in France, provides infrastructure, social and educational services to over 2.5 million people in the north of France. France has 95 departments, which are political subdivisions generally comparable to states in the United States.
 Michael J. Maguire, general manager of MBIA Assurance, said, "The use of credit enhancement from MBIA Assurance will result in significant interest cost savings for the Departement du Nord and added security to bondholders. In addition, our guarantee greatly facilitated the placement of the bonds."
 "MBIA Assurance is well-positioned to capitalize on the future development of public finance in Europe. We see increasing opportunities for the use of credit enhancement as more local governments finance capital improvements through the issuance of public debt," he added.
 Headquartered in Paris, MBIA Assurance offers credit enhancement for European municipal borrowings, infrastructure financings, asset-backed transactions, and obligations of financial institutions and sovereigns. MBIA Assurance guarantees timely payment of principal and interest on new issues and bonds traded in the secondary market. MBIA Assurance has a claims-paying rating of Triple-A from Moody's Investors Service and Standard & Poor's Corporation, and all securities insured by MBIA Assurance receive these ratings.
 -0- 6/8/93
 /CONTACT: Michael C. Ballinger of MBIA Corporation, 914-765-3893/
 (MBI)


CO: MBIA Corporation ST: New York IN: INS SU:

WB -- NY049 -- 6551 06/08/93 12:03 EDT
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Publication:PR Newswire
Date:Jun 8, 1993
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