May 10 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
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.