The Municipal Securities Rulemaking Board issued a notice yesterday urging broker-dealers executing trades of insured municipal bonds to review the MSRB’s rules on fair-dealing, suitability, fair pricing, and confirmation disclosure in the wake of credit rating agency reviews and rating downgrades for some insurers.

The board’s notice came on the first business day after Fitch Ratings on Friday lowered the insurer financial strength rating on Ambac Assurance Corp. to AA from AAA. Also last week, Moody’s Investors Service put its Ambac and MBIA Insurance Corp. ratings on watch for possible downgrade, and Standard & Poor’s put Ambac on negative watch.

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