NEW YORK — Swiss banking giant Credit Suisse paid $600 million to financial guarantee insurer MBIA to settle long-running litigation connected to the US subprime mortgage crisis, MBIA said on Thursday.

The agreement follows a ruling by a New York judge in favour of MBIA in the case concerning Credit Suisse's representations to the company, which provided insurance for residential-backed securities ahead of the 2008 financial crisis.

MBIA said the court dismissed the suit following the settlement. The original case was filed in 2009.

On January 8, Credit Suisse announced it was increasing by $850 million the provisions set aside for the MBIA case and others involving mortgage backed securities, leading to an expected fourth-quarter loss.