MBIA Offering Rated ‘AA’

Fitch Ratings assigned an “AA” rating to MBIA Inc.’s $200 million 20-year senior debt offering. The bonds will bear interest at the rate of 6.4 percent per year. The company intends to use the net proceeds for general corporate purposes which may include retiring a portion of
its outstanding debt. MBIA Insurance Corp. (MBIA) is a monoline financial guarantor and the principal subsidiary of MBIA Inc. Fitch rated the insurer financial strength of MBIA “AAA”.

MBIA Inc.’s debt rating is based on stable revenue flows and strong coverage levels. As of June 30, 2002 MBIA had an $8.1 billion investment portfolio, $5.1 billion in stockholders’ equity, $2.1 billion in unearned premium reserves, and $1.1 billion in present value for future installment premiums. These resources produce stable and predictable revenue flows. MBIA Inc.’s net income for the six months ended June 30, was $298 million. Its full-year 2001 net income was $570 million. Including the new $200 million issue, MBIA’s pro forma long-term debt-to-capital ratio will be 16.3 percent, which is in the moderate range.