NEW YORK, Dec 2 (Reuters) - Standard & Poor’s on Wednesday raised its counterparty credit rating on Ambac Assurance Corp, citing an improved financial position.
The rating for Ambac Assurance, the bond insurance unit of Ambac Financial Group ABK.N, was raised to CC, 10 levels below investment grade, from “selective default,” S&P said.
“The developing outlook reflects our view that Ambac’s financial position has improved, but that the potential for regulatory intervention remains high,” S&P said.
New York-based Ambac, once the No. 2 U.S. bond insurer after larger rival MBIA Inc (MBI.N), has struggled to write new business since large losses and the loss of its top-notch credit ratings last year.
S&P also affirmed its CC financial strength rating on Ambac and removed the rating from CreditWatch, where it was placed with positive implications on Nov. 18. (Reporting by Walden Siew; Editing by Leslie Adler)