Following Detroit's filing of a petition for protection under Chapter 9 of the U.S. Bankruptcy Code, investors have raised questions about the impact that potential claims and insured portfolio credit deterioration could have on bond insurers. Standard & Poor's Ratings Services addresses this issue in a report titled, "U.S. Bond Insurers' Detroit Insured Par Exposure Presents Manageable Risk."

"Although any default creates pressure on capital adequacy, based on our analysis of the bond insurers' capital positions, we do not expect to take any rating actions on them because of a default by Detroit," said Standard & Poor's credit analyst David Veno.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.