Ambac Financial Group plunges on Moody's review
Ambac Financial Group, Inc. (NYSE: ABK) shares are plunging after ratings agency Moody’s Investors Services placed the insurer’s credit rating on review for a potential downgrade from its “AAA” rating.
Ambac said in a statement that it is assessing the impact of Moody’s action and held a morning conference call to discuss the situation. Moody’s said Ambac’s recent quarterly losses, changes in management and plans to raise capital justify the credit review.
Ambac on Thursday said it's assessing its previously disclosed capital plan in light of what it called a "surprising" announcement by Moody's Investors Service in which the ratings agency said it was placing Ambac under review for a possible downgrade.
During the conference call, the New York City-based firm said it is “confident” about its insured portfolio and will discuss the Moody’s review on a conference call scheduled for Jan. 22.
In midday trading, ABK shares are down 54.36%, or $7.05, at $5.92. Shares have taken a wild ride over the last 52 weeks, ranging from $4.50 to $96.10.
