MBIA says New York block on payment does not spell insolvency

NEW YORK Thu Jan 17, 2013 12:27pm EST

NEW YORK Jan 17 (Reuters) - Bond insurer MBIA said on Thursday that New York's decision to prevent it from making an interest payment on a series of notes does not mean it cannot meet its financial obligations.

The decision "does not reflect MBIA Insurance's current solvency or ability to pay claims to policyholders," a lawyer for the insurer wrote in a letter to a New York state judge.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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