Ambac Responds to Moody's Rating Action
19 Septembre 2008 - 1:36AM
Business Wire
Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) expressed surprise
and disappointment with Moody�s decision to place the ratings of
Ambac and its subsidiaries on review for downgrade. Throughout this
difficult market environment and credit cycle, the Company has
engaged in constructive dialogue with Moody�s regarding its
housing-related exposures, the strengths of its business model and
strategies to enhance its standing in a marketplace where many, if
not all, financial institutions have experienced diminished
franchise value. Ambac expects to continue to work with Moody�s as
the rating agency seeks to apply its most recent mortgage-related
assumptions to unique attributes of the individual transactions in
Ambac�s portfolio. Ambac believes that the current housing-related
situation is unprecedented and should be viewed as an extreme
stress scenario against which its financial strength is being
assessed. In its September 18th, 2008 announcement related to loss
projections for subprime RMBS, Moody�s acknowledged that ��there
continues to be significant uncertainty around the ultimate losses
for these loans, which will depend in part on future loss
severities and default frequencies, the level of loan modifications
and/or government intervention, and the future state of the US
economy.� Further, the rating agency recognized that ��the bulk of
ultimate losses will be recognized over a longer period of time, as
evidenced by cumulative loss levels which are currently averaging
1.5% to 4.2% across the vintages reviewed.� They further confirmed
that, �Current losses are still low because loans remain relatively
unseasoned in more recent vintages and partly because modifications
may also be slowing down loss recognition.� Michael Callen,
Chairman and CEO, commented, �Ambac believes that Moody�s rating
actions continue to cause confusion, uncertainty and the risk of
material economic damage if their assumptions ultimately prove to
be too onerous. We are aggressively managing our mortgage-related
exposures and have made demonstrable progress in reducing the risk
in our insured portfolio. Ambac�s financial strength will continue
to improve as we de-lever and commute and remediate our exposures.�
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, pricing
levels and reduction in demand for financial guarantee products;
(4)�legislative and regulatory developments; (5)�changes in tax
laws; (6) changes in our business plan, 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 from March 6, 2008; (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; (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)�changes in expectations regarding future realization of
gross deferred tax assets; (30) risks relating to the re-launch of
Connie Lee; (31) other factors 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 in Part II, Item 1A of our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008,
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 (32)�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 a Aa3
rating from Moody's Investors Service, Inc. and a AA rating from
Standard & Poor's Ratings Services; both Moody�s and Standard
& Poor's maintain a negative outlook. Ambac Financial Group,
Inc. common stock is listed on the New York Stock Exchange (ticker
symbol ABK).
AMBAC (NYSE:ABK)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
AMBAC (NYSE:ABK)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024