WASHINGTON (Reuters) - An industry group that represents bond insurers on Friday tried to reassure markets that its members, including MBIA Inc <MBI.N> and Ambac Financial Group Inc <ABK.N>, are "financially strong."
Corrects quote in paragraph five
WASHINGTON (Reuters) - An industry group that represents bond insurers on Friday tried to reassure markets that its members, including MBIA Inc <MBI.N> and Ambac Financial Group Inc <ABK.N>, are "financially strong."
Fallout from the subprime mortgage crisis is causing growing concern about bond insurers' credit ratings and possible wider market repercussions if those ratings fall.
Two committees of Congress are looking into the matter and the New York insurance regulator is pressing major banks to help the insurers, which guarantee principal and interest payments on trillions of dollars in bonds.
!ADVERTISEMENT!"Our companies are absolutely intent on keeping the triple A rating, or getting it back if they lose it," Bob Mackin, executive director of the Association of Financial Guaranty Insurers, told Reuters in an interview.
He said the bond insurance industry is "financially strong. It's a capital problem, not a liquidity problem, if there's any problem at all."
(Reporting by Kevin Drawbaugh; Editing by Brian Moss)
