MBIA-Insured Housing Bonds Lowered to CCC

Following the downgrade of MBIA Insurance Corp., Standard & Poor's has lowered its ratings on six MBIA-insured housing revenue bonds to CCC from B.

"All of these issues receive partial support via guaranteed investment contracts or investment agreements from MBIA Insurance Corp.," Standard & Poor's analyst Renee Berson wrote in a report released Wednesday. "Should the issuer act to terminate, replace, or guarantee the existing agreements, and provide cash flows demonstrating the ability to pay bond obligations without relying on interest earnings from investment agreements, we will take appropriate rating action."

The affected issues include Alameda Housing Authority, Calif., multifamily housing revenue refunding bonds, Series 1998A; Denver City and County Fannie Mae collateralized multifamily housing revenue bonds, Series 1999 A and B; Nevada Housing Division multi-unit housing revenue bonds, Series 1999 A and 1999B; and San Jose, Calif., multifamily housing revenue bonds, Series 2001 C and 2001D.

Standard & Poor's lowered MBIA Insurance Corp.'s rating to CCC from B on Feb. 28, citing a weakened liquidity position which could result in the company falling under regulatory control in the next 12 months. The agency also lowered the rating on MBIA's municipal-only subsidiary National Public Finance Guarantee to BB from BBB.

Parent company MBIA Inc.'s B-minus rating was affirmed.