S&P Places MBIA Mexico on Credit Watch Negative

S&P has put MBIA Mexico’s AAA global rating on credit watch negative, following actions on its US parent MBIA Insurance. “The rating on the Mexican subsidiary is based on the comprehensive support MBIA provides to MBIA Mexico in the form of a reinsurance agreement, which calls for MBIA Mexico to cede 100% of its net exposure to MBIA, in addition to a net-worth maintenance agreement from MBIA,” the agency said. S&P also lowered ratings or put on credit watch negative seven Mexican, one Panamanian, and one Costa Rican residential mortgage-backed securities transactions backed by MBIA, Financial Guarantee Insurance and XL Capital Assurance, as well as placed five Chilean infrastructure securitizations backed by MBIA on ratings watch negative.