Financial Times FT.com

Monolines downgrades could hit banks

By Aline van Duyn and Michael Mackenzie in New York and Paul J Davies in London

Published: February 5 2008 19:32 | Last updated: February 6 2008 03:12

Standard & Poor’s, the credit rating agency that is considering downgrading the top triple-A credit ratings of bond insurers, warned that the move could be damaging for banks with direct exposure to the insurers.

The forecast came as bond insurers including Ambac, FGIC, MBIA and SCA continue frantic efforts to raise capital to avoid downgrades.

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