Bond Insurers Seek to Maintain Ratings

Fitch Ratings estimates that bond insurers collectively are exposed to about $100 billion in CDOs backed by deteriorating subprime mortgage collateral.  Efforts to prevent drastic downgrades in the triple-A rating essential to a bond insurer's business are underway.  MBIA says it will sell $750 million of common shares to raise capital.  Consortia of banks are working on rescue plans for FGIC and Ambac.  WSJ, Rescue Plans Won't Prevent Downgrades.