Ambac Financial Group has Insured Exposure to Southern California Edison and Pacific Gas & Electric.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 21, 2000 Ambac Financial Group Ambac Financial Group (NYSE: ABK) is an American Insurer of bonds, including municipal bonds. Ambac Financial Group, Inc. (NYSE: ABK) is a holding company whose subsidiaries provide financial guarantee products and other financial services to clients in both , Inc. (Ambac) announced today that it has $75.1 million in insured net par exposure outstanding to Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. . The bonds are secured by a first mortgage or lien on substantially all of the property and franchises now owned by Southern California Edison. Ambac has $72.6 million in insured net par exposure outstanding to Pacific Gas & Electric. These bonds are also secured by a first mortgage lien. Both Southern California Edison and Pacific Gas & Electric have been warned by Standard & Poor's that their ratings might drop below investment grade. "The secured nature of our exposure, coupled with the essentiality of the services the companies provide, cause us to be confident that the likelihood of any material loss is remote," said Robert J. Genader, Vice Chairman. "On the other side of the coin, this difficult situation serves as a strong reminder as to the value of bond insurance," he continued. Ambac Financial Group, Inc., headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. is the principal operating subsidiary of Ambac Financial Group, Inc. Ambac Assurance, a leading guarantor of municipal and structured finance obligations, has earned triple-A ratings, the highest ratings available from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc., Standard & Poor's Ratings Group, Fitch and Rating and Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (ticker symbol ABK). |
|
|||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion