Yesterday Ambac shares lost more than half their value when Moody's Investors Service warned that it may cut the AAA ratings of Ambac and rival MBIA. Fitch Ratings actually took the plunge and downgraded Ambac Financial to AA from AAA. Today Banc of America Securities analyst Tamara Kravec cut her rating on the bond-insurance sector to neutral from overweight and downgraded Ambac, MBIA and Security Capital Assurance to neutral from buy.
ETA: And it's not like this would have taken any brilliant insight or unavailable information to discover. The at-risk nature of the rating has been discussed on websites like www.marketwatch.com since the company announced a $737M loss for the fourth quarter and the resulting need to float a $1B bond offering.
Subscribe to:
Post Comments (Atom)
1 comment:
http://online.wsj.com/article/BT-CO-20080107-712551.html?mod=crnews
Post a Comment