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S&P Successfully Finds Somebody Worse Off Than They Are

Ambac may have just suffered the ultimate humiliation- being told by a rating agency that their business model is completely broken and they have no real prospects going forward. The bond insurer's shame spiral began last week when it couldn't raise enough capital to launch a new muni unit and has now graduated to a eulogy from S&P.

"Loss reserving increases have depleted surplus, boosting the likelihood of regulatory intervention, and we believe Ambac's prospects for writing new business are negligible,"

S&P cuts Ambac rating, says "effectively in runoff" [Reuters]