- Current report filing (8-K)
20 Novembre 2008 - 6:20PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 20, 2008 (November 14, 2008)
AMBAC FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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1-10777
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13-3621676
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(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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One State Street Plaza, New York, New York 10004
(Address of Principal Executive Offices) (Zip Code)
(212) 668-0340
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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On November 19, 2008, Ambac
Financial Group, Inc. (Ambac) announced that it has commuted two CDO of CDO of ABS (commonly referred to as CDO-squared) exposures and two high grade CDO of ABS exposures. The four transactions, with an aggregate of approximately $3.52
billion notional outstanding at September 30, 2008, were settled with counterparties in exchange for a total cash payment by Ambac Assurance Corporation (Ambac Assurance) of $1.0 billion. The two CDO-squared transactions originally
comprised collateral consisting of A-rated CDO of ABS tranches, and the two high grade CDO of ABS exposures originally comprised collateral consisting of subprime and other RMBS rated A- or higher. Most of the collateral had been downgraded to below
investment grade since the inception of the transactions. All four of the transactions had been internally downgraded to below investment grade.
As a result of the settlements, Ambac expects to record positive adjustments to its aggregate mark-to-market and impairment reserves. In addition, the stress case losses in the rating agency capital models for these transactions exceeded
Ambac Assurances final payment; therefore, the settlement will result in an improved rating agency capital position for Ambac Assurance.
On November 19, 2008, Standard & Poors Ratings Services (S&P) downgraded the AA financial strength rating of Ambac Assurance to A. At the same time, S&P downgraded Ambacs
senior debt and hybrid security ratings to BBB and BB+ from A and BBB+, respectively. In addition, S&P downgraded Ambacs A ratings on preferred stock issued by financing trusts to
BBB.
Certain statements in this document and the exhibit are forward looking statements within the meaning of the
Private Securities Litigation Reform Act. These statements are based on managements current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements
due to a variety of factors. More information about these factors is contained in Ambacs filings with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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AMBAC FINANCIAL GROUP, INC.
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(Registrant)
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By:
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/s/ Anne Gill Kelly
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Anne Gill Kelly
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Managing Director, Corporate
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Secretary and Assistant General Counsel
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Dated: November 20, 2008
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