Nov 7 - Standard & Poor's Ratings Services said today that its rating on
MBIA Inc. ('B-/Negative') is unaffected by the proposed implementation
of amendments to its debt indentures. We took the performance and financial
condition of holding company MBIA Inc.'s operating companies, National Public
Finance Guarantee Corp. (National; 'BBB/Developing') and MBIA Insurance Corp.
(MBIA Corp.; 'B/Negative'), together into consideration when arriving at our
rating on MBIA Inc. The rating on MBIA Inc. reflects the operating companies'
limited dividend capacity and the holding company's weak liquidity position. Our
rating also reflects MBIA Corp.'s run-off state and National's limited near-term
growth opportunities. The notching of the rating on MBIA Inc. reflects the
current risks inherent at the company: uncertainty regarding transformation
litigation, its intercompany secured loan obligations, and its weak liquidity.
We expect MBIA Inc.'s cash and short-term investments to cover its
debt-servicing needs and operating-expense obligations through 2013--an
important factor for the rating. The estimated tax escrow release related to
the tax-sharing agreement could also provide additional liquidity.