MBIA Writing `Very Little' New Business Amid Scrutiny

MBIA Inc. is writing ``very little'' new bond insurance business as borrowers balk at buying a guarantee from a money-losing company without stable AAA credit ratings.

MBIA, whose ratings were under scrutiny by Moody's Investors Service and Standard & Poor's for more than three months, said losses on mortgage-backed securities will probably increase this year and expand beyond subprime mortgages.

The company, based in Armonk, New York, is seeking to salvage its business insuring municipal bond debt after expanding into guarantees on collateralized debt obligations that tumbled in value as the subprime-mortgage market collapsed. Rival Assured Guaranty Ltd. today agreed to a $1 billion investment from investor Wilbur Ross to help it take more business from MBIA and Ambac Financial Group Inc.

``The demand for our product is the lowest it has been, and we are writing very little new business,'' the company said in a filing today with the U.S. Securities and Exchange Commission.