Moody's says it may cut Aaa ratings of Ambac, MBIA
Bond insurers' shares slump after ratings agency warning
SAN FRANCISCO -- Moody's Investors Service said Wednesday that it may
downgrade the Aaa ratings of Ambac Financial and MBIA Inc. because the bond
insurers are being hit harder than expected by the mortgage-fueled credit
crunch.
MBIA shares slumped 13% to $5.84 during afternoon trading after the ratings
agency's warning. Ambac dropped 16% to $2.53.
Ambac and MBIA have weak new business pro
