UPDATE 1-S&P ups National Public Finance financial strength rating

Fri May 10, 2013 3:28pm EDT

May 10 (Reuters) - Standard & Poor's Ratings Services on Friday raised National Public Finance Guarantee Corp's financial strength rating to A from BBB and removed the rating from CreditWatch Positive.

With the cash settlement paid by Bank of America Corp to MBIA on Monday and the agreement on Wednesday with Societe Generale, which was the last remaining of the 18 banks that objected to the restructuring, National Public Guarantee's rating is not anchored any more to the one of MBIA Insurance.

"The stable outlook on National reflects our expectation that it will gain market acceptance and become a competitive financial guarantor," S&P said in its statement.

The ratings agency also raised MBI Inc's counterparty credit rating to BBB from B-minus - now at investment-grade level - with a stable outlook.

The move by S&P follows an initial upgrade on Wednesday before the announcement of the deal with Societe Generale.

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

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