Municipal bond insurers cannot rely on rising interest rates as a panacea for the recent slowdown in earnings growth, Standard & Poor's Corp. said in Monday's issue of CreditWeek Municipal.

"In the long run, a cyclical upswing in interest rates can have a beneficial impact on bond insurers' earnings and returns," Standard & Poor's said in the report, "Bond Insurers' Cyclical Woes." "But a return to the extraordinary returns on capital experienced in 1993 is not likely."

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