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MBIA Gets Added Boost From Moody's

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MBIA surged as much as 6% in trading Tuesday after Moody's Investor Services confirmed the financial guarantor's triple-A rating.

The action comes a day after Standard & Poor's did the same, taking considerable pressure from the ratings agencies off the company. Like rivals Ambac Financial(ABK - Cramer's Take - Stockpickr), closely held Financial Guarantee Insurance Co. and other guarantors, MBIA has been pressed to shore up capital in the face of potential defaults on the debt it insures. Failing to do so meant potentially losing its pristine ratings, impairing its ability to win new business.

"Over the past two months, MBIA has completed transactions to raise $1.6 billion in equity and $1 billion in surplus notes, demonstrating a strong commitment to its policyholders," Moody's said in a note. "MBIA is considering a number of initiatives that should enable it to meet the [triple-A] target threshold over the next six to 12 months."

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