MBIA Inc (MBI)

[lecorb]

Kroll Confident in Muni-Bond Insurers.Puerto Rico, in the oven

1:50 pm ET July 6, 2015 (Dow Jones) Print


13:50 EDT - As Puerto Rico edges closer to a possible default, rating agency Kroll is giving bond insurers which back billions of dollars of Puerto Rico debt a vote of confidence. The agency gives AA+ ratings to Assured Guaranty Municipal and National Public Finance Guarantee, saying recent events have "not progressed to a point that exceeds the level of stress we have previously incorporated in the rating analysis." Incorporated is an assumption that Puerto Rico losses of around 40% are seen by each insurer, but Knoll says their claims-paying resources are "sufficient to meet all requirements by a comfortable margin." ([e-mail]; @Mike_Cherney)

(END) Dow Jones Newswires

July 06, 2015 13:50 ET (17:50 GMT)