Ambac Confirms Postive Rating Agency Reactions to Its $1.5 Billion Capital Raise
13 Marzo 2008 - 12:38AM
Business Wire
Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today announced
that Moody�s and S&P have affirmed their triple A ratings on
Ambac Assurance Corporation and Ambac Assurance UK Limited and, in
concluding their review, have removed these ratings from 'review
for possible downgrade' and 'Credit Watch Negative', respectively.
Fitch also concluded that the capital raise is sufficient to result
in the removal of �Rating Watch Negative� from the AA rating of
Ambac Assurance Corporation. All three rating agencies have
assigned a 'negative outlook' to reflect the uncertainty regarding
the mortgage market. Ambac also notes that its debt ratings are no
longer on review for downgrade by any of Moody�s, S&P or Fitch.
Moody�s did, however, change the ratings by one notch from Aa2 to
Aa3. This change brings the notching differential between Ambac
Assurance Corporation and Ambac (three notches) in line with
Moody�s standard notching practice for U.S. insurance holding
companies. All three agencies have assigned a �negative outlook� to
the senior unsecured debt ratings of Ambac, consistent with the
outlook for Ambac Assurance Corporation and Ambac Assurance U.K.
Limited. Michael Callen, Chairman and CEO of Ambac, commented that,
�The successful completion of the capital raise was a very
important component of the rating analysis. We want to thank all
the rating agencies for their hard work in this process�.
Forward-Looking Statements This release contains statements that
may constitute "forward-looking statements" within the meaning of
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Any or all of management�s forward-looking
statements here or in other publications may turn out to be wrong
and are based on Ambac�s management current belief or opinions.
Ambac�s actual results may vary materially, and there are no
guarantees about the performance of Ambac�s securities. Among
events, risks, uncertainties or factors that could cause actual
results to differ materially are: (1)�changes in the economic,
credit, foreign currency or interest rate environment in the United
States and abroad; (2)�the level of activity within the national
and worldwide credit markets; (3)�competitive conditions and
pricing levels; (4)�legislative and regulatory developments;
(5)�changes in tax laws; (6) changes in our business plan,
including changes resulting from our decision to discontinue
writing new business in the financial services area, to
significantly reduce new underwriting of structured finance
business and to discontinue all new underwritings of structured
finance business for six months; (7)�the policies and actions of
the United States and other governments; (8)�changes in capital
requirements whether resulting from downgrades in our insured
portfolio or changes in rating agencies� rating criteria or other
reasons; (9)�changes in Ambac�s and/or Ambac Assurance�s credit or
financial strength ratings; (10)�changes in accounting principles
or practices relating to the financial guarantee industry or that
may impact Ambac�s reported financial results; (11)�inadequacy of
reserves established for losses and loss expenses; (12)�default by
one or more of Ambac Assurance�s�portfolio investments, insured
issuers, counterparties or reinsurers; (13)�credit risk throughout
our business, including large single exposures to reinsurers;
(14)�market spreads and pricing on insured collateralized debt
obligations (�CDOs�) and other derivative products insured or
issued by Ambac; (15)�credit risk related to residential mortgage
securities and CDOs; (16)�the risk that holders of debt securities
or counterparties on credit default swaps or other similar
agreements seek to declare events of default or seek judicial
relief or bring claims alleging violation or breach of covenants by
Ambac or one of its subsidiaries; (17)�the risk that our
underwriting and risk management policies and practices do not
anticipate certain risks and/or the magnitude of potential for loss
as a result of unforeseen risks; (18)�the risk of volatility in
income and earnings, including volatility due to the application of
fair value accounting, or FAS 133, to the portion of our credit
enhancement business which is executed in credit derivative form;
(19)�operational risks, including with respect to internal
processes, risk models, systems and employees; (20)�the risk of
decline in market position; (21)�the risk that market risks impact
assets in our investment portfolio; (22)�the risk of credit and
liquidity risk due to unscheduled and unanticipated withdrawals on
investment agreements; (23)�changes in prepayment speeds on insured
asset-backed securities; (24) factors that may influence the amount
of installment premiums paid to Ambac; (25)�the risk that we may be
required to raise additional capital, which could have a dilutive
effect on our outstanding equity capital and/or future earnings;
(26)�our ability or inability to raise additional capital,
including the risks that regulatory or other approvals for any plan
to raise capital are not obtained, or that various conditions to
such a plan, either imposed by third parties or imposed by Ambac or
its Board of Directors, are not satisfied and thus potentially
necessary capital raising transactions do not occur, or the risk
that for other reasons the Company cannot accomplish any
potentially necessary capital raising transactions, including the
transactions contemplated hereby; (27)�the risk that Ambac�s
holding company structure and certain regulatory and other
constraints, including adverse business performance, affect Ambac�s
ability to pay dividends and make other payments; (28)�the risk of
litigation and regulatory inquiries or investigations, and the risk
of adverse outcomes in connection therewith, which could have a
material adverse effect on our business, operations, financial
position, profitability or cash flows; (29)�other factors discussed
under �Risk Factors� in this prospectus supplement, described in
the Risk Factors section in Part I, 1A of our Annual Report on Form
10-K for the fiscal year ended December 31, 2007 and also disclosed
from time to time by Ambac in its subsequent reports on Form 10-Q
and Form 8-K, which are or will be available on the Ambac website
at www.ambac.com and at the SEC�s website, www.sec.gov; and
(30)�other risks and uncertainties that have not been identified at
this time. Readers are cautioned that forward-looking statements
speak only as of the date they are made and that Ambac does not
undertake to update forward-looking statements to reflect
circumstances or events that arise after the date the statements
are made. You are therefore advised to consult any further
disclosures we make on related subjects in Ambac�s reports to the
SEC. Ambac Financial Group, Inc., headquartered in New York City,
is a holding company whose affiliates provide financial guarantees
and financial services to clients in both the public and private
sectors around the world. Ambac's principal operating subsidiary,
Ambac Assurance Corporation, a guarantor of public finance and
structured finance obligations, has earned triple-A ratings from
Moody's Investors Service, Inc. and Standard & Poor's Ratings
Services; and a double-A rating from Fitch, Inc. Moody's, Standard
& Poor's and Fitch all maintain a �negative outlook�. Ambac
Financial Group, Inc. common stock is listed on the New York Stock
Exchange (ticker symbol ABK).
Grafico Azioni AMBAC (NYSE:ABK)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni AMBAC (NYSE:ABK)
Storico
Da Lug 2023 a Lug 2024