Standard & Poor's changed some of its ratings for National Public Finance Guarantee Corp., the municipal bond insuring subsidiary of MBIA. S&P affirmed the financial strength rating of National at BBB and lowered the standalone credit profile to A from A-plus.

There is currently litigation challenging MBIA's 2009 split into National Public Finance Guarantee Corp. and MBIA Insurance Corp. "If the litigation is adverse to the companies, National might need to support MBIA Insurance Corp.'s capital, which would place significant downward pressure on the rating," said S&P credit analyst David Veno.

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