NEW YORK, June 4 (Reuters) - Ambac Financial Corp ABK.N maintains “strong liquidity and capital” despite the warning of a downgrade by Moody’s Investors Service, an Ambac executive said on Wednesday.
Announcement of a potential cut to Ambac’s bond insurance unit’s credit rating earlier on Wednesday by Moody’s is due to concern about the business model, rather than capital adequacy, Douglas Renfield-Miller, an executive vice president at Ambac, told analysts at the Keefe, Bruyette & Woods Diversified Financial Services Conference in New York.
“We still exceed Moody’s ‘Aaa” target,’ Renfield-Miller said. “So capital really doesn’t seem to be an issue, they are more concerned about the model.”
Ambac in raising capital met the “Aaa” target last month, ahead of its June expectation, he said. (Reporting by Al Yoon; Editing by Leslie Adler)