November 27, 2007 / 2:56 PM / 12 years ago

Ambac CFO says will defend triple A rating

NEW YORK, Nov 27 (Reuters) - The chief financial officer at Ambac Financial Group Inc ABK.N on Tuesday said the bond insurer would consider reinsurance transactions to free up capital as investors worry about Ambac’s exposure to subprime-related assets.

Ambac CFO Sean Leonard said the company will continue to defend its triple A rating, and added that there’s a lot of opportunity for the company to reinsure its transactions. He said about 85 percent of the company’s portfolio is non-mortgage related.

Leonard made his remarks at a Bank of America bond insurance conference in New York. Other options Ambac would consider to raise capital include issuing debt or equity, executives said.

Bond insurers face questions on whether they have enough capital to absorb losses on their guarantees against defaults. Ambac executives said the company’s excess capital tops $1 billion. (Reporting by Tim McLaughlin, editing by Gerald E. McCormick)

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