MBIA, the world's largest healthcare bond insurer, saw its triple-A ratings affirmed by the three major ratings agencies despite the company's announcement that it will restate earnings for 1998 through 2001 to reflect corrections related to now-defunct Allegheny Health, Education and Research Foundation. Moody's Investors Service, Standard & Poor's and Fitch Ratings retained their ratings on bond insurance issued by MBIA, although the restatement will reduce the company's earnings by $83 million cumulatively. The restatement resulted from a correction of accounting of reinsurance arrangements on the AHERF insurance. MBIA also said it received a subpoena for information on the reinsurance arrangements from the U.S. attorney's office for the Southern District of New York. MBIA is the largest global healthcare bond insurer, covering $34.4 billion in healthcare bonds as of the end of 2003, according to S&P. The next largest, Ambac Financial Group, insures $22.3 billion in healthcare bonds. -- by Paul Barr
Bond insurer's high ratings survive income restatement
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