Bond insurer MBIA ( MBI) will slash its dividend in order to save $80 million a year, a move the company says will aid in stabilizing its capital base.

The company said early Wednesday that its quarterly dividend will be reduced to 13 cents a share from 34 cents, making it the latest in a series of financial firms to reduce its payout in order to deal with the seize-up in the credit markets.

Cramer: MBIA and Insurers Derail the Market

MBIA also said that as part of its effort to meet or exceed the rating agencies' triple-A requirements, its primary insurance operating unit MBIA Insurance will issue $1 billion of surplus notes that mature in 2033.

This article was written by a staff member of TheStreet.com.

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