"MBIA Inc. has asked Fitch Ratings to withdraw its insurer ratings on six of its units, saying it disagrees with the ratings company's approach. MBIA spokesman Willard Hill said Fitch's models would require it to put too much capital to back its business of guaranteeing now-troubled structured-finance debt, which MBIA intends to separate from its less risky business of insuring municipal bonds. ... While MBIA said it wants Fitch to continue rating outstanding debt obligations from MBIA and MBIA Insurance Corp. Fitch said it will 'evaluate its ability to maintain coverage' on MBIA in the coming days. ... Fitch has been the most aggressive of the three main rating firms in issuing negative assessments of bond insurers", WSJ, 10 March 2008.
Mike Shedlock has a nice 10 March 2008 post on this at http://www.globaleconomics.com/. I note the SEC might develop a 8-K reporting requirement for circumstances like this similar to the one for changing CPA firms.
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