MBIA & Ambac Lose AAA Rating
MBIA and Ambac, the world's largest bond insurers,
had their AAA financial strength rankings cut two levels to AA by Standard & Poor's.
The ratings on the holding companies were cut three levels to A from AA for Ambac Financial and to A- from AA- for MBIA.
S&P will keep the ratings under review pending:
"clarification of ultimate potential losses as well as future business prospects, the outcome of strategic business decisions, and potential regulatory developments."
The Nattering One muses... The market rally stalled breifly on the news, then continued as most investors figure the downgrade is already priced in.
The fallout on the ratings cut of more than $1 trillion of securities these companies guarantee will not be immediate.
had their AAA financial strength rankings cut two levels to AA by Standard & Poor's.
The ratings on the holding companies were cut three levels to A from AA for Ambac Financial and to A- from AA- for MBIA.
S&P will keep the ratings under review pending:
"clarification of ultimate potential losses as well as future business prospects, the outcome of strategic business decisions, and potential regulatory developments."
The Nattering One muses... The market rally stalled breifly on the news, then continued as most investors figure the downgrade is already priced in.
The fallout on the ratings cut of more than $1 trillion of securities these companies guarantee will not be immediate.
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