Ambac Financial Group today said it has terminated its relationship with Fitch Ratings after deciding that it no longer had a need for the rating of the markets smallest credit rating agency.
Fitch assigns a 'AA' rating with a negative outlook on Ambacs bond insurer, Ambac Assurance Corp.
Our decision to refocus and realign our business around our core expertise in the public finance and infrastructure sectors has led us to re-evaluate our ratings needs, the company said in a release. As part of this review, we have asked Fitch to remove its ratings on Ambac and all its subsidiaries effective immediately.
Fitch had no immediate comment.
Ambacs decision comes as the company looks to focus its efforts on writing policies on municipal and infrastructure finance, steering clear of structured finance.
Plans are underway to capitalize a wholly owned subsidiary, Connie Lee Insurance Co., and the company is looking to find some ratings stability, whether that is at the triple-A or double-A level. It hopes taking the necessary actions to stabilize those ratings at two rather than three rating agencies should help add to the stability.
Standard & Poors assigns a rating of 'AA' on negative watch for Ambac Assurance, while Moodys Investors Service rates the financial guarantor 'Aaa', but has it on review for a downgrade.
