Standard & Poor's Rating Services said on Thursday that it downgraded the bond insurance units of Ambac Financial and MBIA Inc. to AA from AAA.
Thought this was hilarious. Moody's got outmaneuvered again. They are the ones who publicly bring it up and the S&P comes in and cuts them. So Moody's will have the distinction of the last rating agency giving Ambac and MBIA a AAA rating.
So now the debate shifts to run off value. MBIA fell on the news and is now back up. Time will tell whether this is a zero or $2 a share or $10 a share. I lean toward the lower end. Stock is all over the place today though.