After selling more than $4 billion in assets during the second quarter, MBIA Inc. said yesterday it has the extra cash and other assets needed to satisfy additional requirements under its guaranteed investment contracts prompted by the downgrade of MBIA Insurance Corp. to A2 from Aaa by Moody's Investors Service June 19.

"Contrary to recent statements in the media, MBIA is not in a 'tenuous' situation," MBIA chief financial officer C. Edward Chaplin said in a statement. "Our ability to quickly reposition our assets underlying our asset/liability management business in a difficult market demonstrates the high quality and liquidity of the portfolio."

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