RIP Ambac Financial

D

Daal

They are not raising capital anymore
Fitch have them on 'rating watch negative'
S&P have them on 'negative outlook'
Moody's have them on 'review for possible downgrade'
Is it too much to say they will be downgraded and not have any news business for years and years while the losses keep eating their capital?
dont cover your short financials just yet this means more losses for banks
http://www.ambac.com/Press/011808.html
 
Fitch Downgrades Ambac
By The Associated Press
Last Updated: 02:36 PM EST Jan 18, 2008

NEW YORK (AP) _ Credit rating agency Fitch Ratings downgraded bond insurer Ambac Financial Group Inc. to "AA" from "AAA" on Friday, which could force the company to stop writing new insurance.

Fitch downgraded the company after Ambac said it scrapped a plan to raise $1 billion in capital to cover potential future claims. Bond insurers make payments to cover principal and interest when issuers are unable to pay their obligations.

The rating also remains on negative credit watch for a further downgrade.

Copyright © 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

H/ ABK I/INS M/FCL C/FIS I/FIS
 
Quote from cgtrader:

Is this not huge news??!!!!
More...

you need 2 downgrades to impact bond holders as per cnbc.

this is the market's worst fear come true so it will be interesting to see where we go from here.
 
So we wait for Moodys and S&P

I wonder if they work weekends or on the holiday Monday?

I can imagine the atmosphere inside those places must be crazy right now.
 
its amazing that the stock held up when this news means no new business for them for years(if they dont file for bankruptcy before). at best the company will be a zombie living trying to payoff policy holders and be forced to end the dividend with no growth and imploded reputation. mbia stock must be pricing in some kind of less competitive market.
I wonder when the stockholders will wake up
 
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