Another one bites the dust

With all the talk of monoline rescue plans, bail-outs for AMBAC and MBIA, business splits into a safe muni and toxic waste CDO branches, reality is harsh for the monoline insurers, as a previously infused monoline that thought it could have maintained its AAA rating saw it cut today (via Reuters)

Moody's cut CIFG's insurance financial strength rating four notches from "AAA" to "A1" -- the fifth highest investment-grade rating....

Banque Populaire and Caisse d'Epargne, which together own French bank Natixis took over control of CIFG from Natixis last year as part of a $1.5 billion capital injection aimed at stabilizing CIFG's top ratings.

Time to flush that $1.5 billion down the drain....