Ambac (ABK) Keeps Aaa Rating, Cuts Dividend

Ambac (NYSE: ABK) was able to keep its Moody's Aaa rating, In the process it had to cut its dividend from $.07 to .01. The bond insurance company said it would also suspend all structured finance business for the next six months.

The company commented "Suspending structured finance writings for six months is expected to free up approximately $600 million in capital.”

Douglas A. McIntyre