In a widely anticipated event, Moody's finally succumbed to mounting criticism from everyone in the investment community and downgraded MBIA and ABK. MBIA's rating was cut five notches and ABK's three. Moody's retained a negative outlook on both insurers.

According to the Financial Times, who conducted an independent investigation, Moody's awarded incorrect Triple A ratings to billions of dollars worth of CPDOs. Apparently, the Financial Times discovered a computer glitch in Moody's models that would have awarded ratings up to four notches lower than the original AAA rating.

Top state officials will urge House lawmakers on Wednesday to support their effort to change the way credit-rating agencies evaluate bonds given by state and local governments.

A major bond insurer, FGIC Corp, didn’t manage to raise enough capital to compensate for losses on subprime mortgage guarantees. It led to its loss of Aaa insurance rating at Moody's Investors Service. The losses are estimated at about $2 billion.

Moody's Corp, which performs financial research and analysis on commercial and government entities, announced that its fourth-quarter profit fell, as credit market turmoil reduced ratings for complex debt.

Intuit Inc. has announced that it priced a $1 billion public debt offering on March 7.