MBIA Asks Fitch to Withdraw Ratings

MBIA, one of the bond insurers that has been working to maintain ratings strained by mortgage-related exposures, has asked Fitch to withdraw its insurer financial strength ratings on its subsidiaries, citing reasons that include limited use of the rating agency by MBIA's issuers. MBIA chairman and chief executive Jay Brown gave extensive reasons for the move in a letter to owners after Fitch posted MBIA's request to withdraw ratings on the Fitch website. Mr. Brown also addressed what he said were press and Internet allegations that MBIA withdrew the ratings because of an impending Fitch downgrade, declaring that its limited knowledge of the rating agency's model makes it impossible for the company to estimate what Fitch's model "will produce in any given week, nor why the changes occur, nor when." A call to Fitch had not been returned as of midday Monday.