Well Be That Way Then

Fitch throws the towel back at Ambac. Bloomberg (01.18.08), via Calculated Risk:

"Ambac Financial Group Inc. became the first bond insurer to lose its AAA rating after Fitch Ratings downgraded the company.

Ambac Assurance Corp. was lowered two levels to AA and may be reduced further, New York-based Fitch said today in a statement. The downgrade 'reflects the significant uncertainty with respect to the company's franchise, business model and strategic direction,' Fitch said.

Ambac Insurance Loses AAA Ranking at Fitch Ratings

"Without its AAA rating Ambac may be unable to write the top-ranked bond insurance that makes up 74 percent of its revenue. Ambac may have to quit the business or sell itself, said Robert Haines, an analyst at CreditSights Inc., a bond research firm in New York."

"The downgrade throws doubt on the ratings of $556 billion in municipal and structured finance debt guaranteed by Ambac."

Ewwww. Lot of dough, eh?