NEW YORK (TheStreet) -- MBIA (MBI) shares are down 14.06% to $7.15 on heavy volume Monday as investor concerns over Puerto Rico's debt crisis came to a head over the weekend.
The exact amount of liability is still being measured, according to Bloomberg, after Puerto Rico's governor said that the U.S. territory's $72 billion debt was unpayable.
Combined with Assured Guaranty (AGO), MBIA is liable for up to $9.4 billion of the island's debt.
Puerto Rico Governor Alejandro Garcia Padilla's admission to the New York Times that the country had no means to pay off its debt makes both insurer's stock unbuyable, BTIG analyst Mark Palmer said today, according to Bloomberg.
Palmer lowered his rating for both companies to "neutral" from "buy".
As of March 31, MBIA had about $4.5 billion of par exposure while Assured Guaranty had $4.9 billion of par exposure to Puerto Rico.
Assured Guaranty stock is down 10.96% to $24.42 in morning trading today.
TheStreet Ratings team rates MBIA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MBIA INC (MBI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself."