Moody’s Upgrades National Public Finance Guarantee Corp.

  Moody’s Upgrades National Public Finance Guarantee Corp.

Business Wire

ARMONK, N.Y. -- May 22, 2014

National Public Finance Guarantee Corporation (National), an indirect
subsidiary of MBIA Inc. (NYSE:MBI), today announced that Moody’s Investors
Service (Moody’s) has upgraded its insurance financial strength rating to ‘A3’
from ‘Baa1’. The outlook for the rating is stable. Moody’s upgrade of National
reflects, among other things, its strong stand-alone capital profile and its
improving prospects for generating new business in the U.S. public finance
insurance market.

“We’re pleased that Moody’s has recognized the improvement in National’s
credit profile,” said Bill Fallon, National’s Chief Executive Officer. “The
upgrade provides immediate benefits to holders of National-insured bonds and,
together with recently announced ratings from Standard and Poor’s and Kroll
Ratings in the double-A range, puts National in a strong position to resume
new business activities and serve the credit enhancement needs of the U.S.
public finance market.”

Forward-Looking Statements

This release includes statements that are not historical or current facts and
are “forward-looking statements” made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The words “believe,”
“anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,”
“looking forward” or “will continue,” and similar expressions identify
forward-looking statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected, including,
among other factors, the possibility that MBIA Inc., which is the ultimate
parent company of National Public Finance Guarantee Corporation, or National
will experience increased credit losses or impairments on public finance
obligations issued by state, local and territorial governments and finance
authorities that are experiencing unprecedented fiscal stress; the possibility
that loss reserve estimates are not adequate to cover potential claims; MBIA
Inc.’s or National’s ability to fully implement their strategic plan,
including the ability to maintain high stable ratings for National and
generate investor demand for National’s financial guarantees; and changes in
general economic and competitive conditions. These and other factors that
could affect financial performance or could cause actual results to differ
materially from estimates contained in or underlying MBIA Inc.’s or National’s
forward-looking statements are discussed under the “Risk Factors” section in
MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or
amended in MBIA Inc.’s subsequent filings with the Securities and Exchange
Commission. MBIA Inc. and National caution readers not to place undue reliance
on any such forward-looking statements, which speak only to their respective
dates. National and MBIA Inc. undertake no obligation to publicly correct or
update any forward-looking statement if it later becomes aware that such
result is not likely to be achieved.

National Public Finance Guarantee Corporation, headquartered in Armonk, New
York is the world’s largest U.S. public finance-only financial guarantee
insurance company, with offices in New York and San Francisco. Please visit
National’s website at www.nationalpfg.com.

Contact:

National Public Finance Guarantee Corporation
Media:
Kevin Brown, +1-914-765-3648
or
Investor Relations:
Nick Sourbis, +1-914-765-3385
 
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