MBIA Comments on Standard & Poor's Downgrade of MBIA's Financial Strength Rating...

MBIA Comments on Standard & Poor's Downgrade of MBIA's Financial Strength Rating to AA

ARMONK, N.Y.--(Business Wire)--
MBIA Inc. (NYSE: MBI) issued the following statement in response
to the decision today by Standard & Poor's Ratings Services (S&P) to
downgrade MBIA's insurance financial strength rating from AAA to AA.

"Despite the difficulty in managing to changing and uncertain
rating agency standards, we remain confident of our capitalization,
liquidity and future prospects," said Jay Brown, MBIA Chairman and
Chief Executive Officer. "We will engage in discussions with S&P to
better understand the basis for their decision. In the coming weeks,
we will work with our Board of Directors to thoroughly examine all of
our options as we further the transformation of the Company with the
goal of delivering long-term value to our shareholders."

Forward-Looking Statements

This release contains statements about future results that may
constitute "forward-looking statements" within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Readers are cautioned that these statements are not guarantees
of future performance. There are a variety of factors, many of which
are beyond MBIA's control, which affect the operations, performance,
business strategy and results and could cause its actual results to
differ materially from the expectations and objectives expressed in
any forward-looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward-looking statements which speak only
as of the date they are made. MBIA does not undertake to update
forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statements are
made. The reader should, however, consult any further disclosures MBIA
may make in its future filings of its reports on Form 10-K, Form 10-Q
and Form 8-K.

MBIA Inc., through its subsidiaries, is a leading financial
guarantor and provider of specialized financial services. MBIA's
innovative and cost-effective products and services meet the credit
enhancement, financial and investment needs of its public and private
sector clients, domestically and internationally. MBIA Inc.'s
principal operating subsidiary, MBIA Insurance Corporation, has
financial strength ratings of Double-A on CreditWatch Negative from
Standard & Poor's Ratings Services and Triple-A, on review for
possible downgrade, from Moody's Investors Service. Please visit
MBIA's Web site at www.mbia.com.

MBIA
Media:
Kevin Brown, +1-914-765-3648
Elizabeth James, +1-914-765-3889
or
Investor Relations:
Greg Diamond, +1 914-765-3190
or
APCO Worldwide
Media:
Jim McCarthy +1-202-333-8810

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