Ambac Financial Group, Inc. Announces Fourth Quarter Net Loss of $3,255.6 Million - Page 2

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Ambac Financial Group, Inc. Announces Fourth Quarter Net Loss of $3,255.6 Million

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01-25-2008 , 12:51 PM

#26

ahnuld

Carpal \'Tunnel

Join Date: May 2005 Posts: 17,592

losing 90% of value in and of itself has nothing to do with credit rating. Cutting the dividend should make a rating agency more likely to maintain the rating. Im sorry but that article was written by a moron. I realize the point hes trying to make but still.

edit: obviously they are symptoms of something bad, but we assume the market is aware of those things and then on paper cutting the dividend is seen as a positive

Quote

01-25-2008 , 12:54 PM

#27

The once and future king

Pooh-Bah

Join Date: Aug 2004 Posts: 5,585

Quote:

Originally Posted by ahnuld

Think thats very harsh. So what if those dont relate to negative rating, the other facts sure as hell do, hes just pointing out what bad shape that particular monoline is in.

edit:

The bad facts massively outweigh any benefits from a dividend cut in fact the dividend cuts are totally a consequence of the bad facts. Bad facts ftw.

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01-25-2008 , 12:57 PM

#28

ahnuld

Carpal \'Tunnel

Join Date: May 2005 Posts: 17,592

oh no doubt they are in bad shape. Im just saying it makes the guy seem kinda silly and I wouldnt cite him as a source.

And I agree with you that without a capital infusion from some PE source or gov. intervention some of these guys are ****ed.