S&P downgrades MBIA notes

Standard & Poor's said it lowered its rating on MBIA Insurance Corp.'s 14% fixed-to-floating rate surplus notes due 2033 to C from CCC.

S&P said the downgrade is a result of nonpayment of interest due on Jan. 15.

The New York State Department of Financial Services denied MBIA's request to make the scheduled interest payment. Under New York insurance law, any payment on the notes may be made only with the prior approval of the department.

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