Does this look like an AAA rated company?
Does that look like an AAA rated company to anyone on planet earth? OK, So the S&P predicted that reported losses were within projections. But can someone at the S&P please explain how the above numbers can possibly be rated AAA whether they met anemic projections or not?
In that regard, exactly how much new business is Ambac going to bring in now? Business is only down a mere 87%. With that, I wish to repeat what I said the other day in Ambac expects losses of 81.8% of underlying collateral: “Ambac is not going to get much if any guarantee business. And a guarantee business that does not get guarantee business is guaranteed to go bankrupt. It’s as simple as that.”
Ambac could have raised money at $40, $30, or $20 far easier than it can raise money at $3.76. Ambac is down a mer 96% in less than a year. What does it have to lose now by saying it will not raise capital? There is quite literally nothing left for Ambac to lose.
That begs the question: Is there is any credibility left to lose with Dick Smith, Managing Director, at the S&P either?
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
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