- Ambac Financial Group
Infobox Company
name = Ambac Financial Group, Inc.
type = Public (NYSE|ABK)
slogan = Financial Peace of Mind
foundation =New York City , USA (1971)
location =One State Street Plaza ,New York City , USA
key_people =Michael A. Callen, CEO
num_employees = 367
industry =Financial services
revenue = decrease US $6.25 billion (2007)cite press release | title = Full Year 2007 Revenues of -$6.25 Billion, | publisher = Yahoo Finance | date = 2008-05-20 | url = http://finance.yahoo.com/q/ks?s=ABK | accessdate = 2008-05-21 ]
homepage = [http://www.ambac.com/ www.ambac.com] The Ambac Financial Group, Inc., generally known as Ambac, (NYSE|ABK) is an Americanholding company whose subsidiaries provide financial guarantee products, such asbond insurance and other financial services to clients in both the public and private sectors around the world. Ambac is regulated by theinsurance commission of Wisconsin. Through its financial services subsidiaries, the company provides investment agreements,interest rate swap s, investment advisory andcash management services, primarily to states, municipalities and their authorities.Credit rating
Ambac and other
bond guarantor s, such asMBIA , were hit hard by the2007 subprime mortgage financial crisis , and, onJanuary 18 ,2008 , its Fitch credit rating was lowered from AAA (the highest) to AA when its plans to raise two billion dollars in new capital failed. [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=asLtTQyLRQQs&refer=home "Ambac's Insurance Unit Cut to AA From AAA by Fitch Ratings"] article byChristine Richard Jan. 19 (Bloomberg)]Moody's andS&P , however, chose to affirm Ambac's AAA with their agencies after it succeeded in raising $1.5 billion in new capital in March 2008. [ [http://www.marketwatch.com/news/story/moodys-sp-confirm-ambacs-aaa/story.aspx?guid=%7B508E2E56-59E2-45F1-85CD-DB189396B438%7D "Moody's, S&P confirm Ambac's AAA ratings"] article byAlistair Barr March 12, 2008 (MarketWatch )] In early 2008, the spectre of the major bond guarantors failing to be able to pay off insurance claims on a trillion dollars of securities back by sub-prime mortgages and other securitized debt led to attempts to shore them up with infusions of capital. [ [http://www.nytimes.com/2008/01/24/business/24bonds.html "Next on the Worry List: Shaky Insurers of Bonds"] article by Vikas Bajaj and Jenny Anderson inThe New York Times January 24, 2008] On June 19, 2008 Moody's downgraded Ambac's credit rating three notches to Aa3. [cite web
url=http://www.foxbusiness.com/story/markets/industries/finance/stocks-focus-friday/-1081423944
author=MarketWatch
title=Stocks In Focus For Friday
publisher=Fox Business ]Maintaining a high credit rating is critical for bond insurance firms. Companies and governments buy insurance to reduce their borrowing costs by assuming the higher rating of the insurer. Keeping up this rating is thus the basis of the insurer's business model.
References
External links
* [http://www.ambac.com/ Ambac website]
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