Financial Times FT.com

Ambac shares hit after loss warning

By Aline van Duyn and Stacy-Marie Ishmael in New York

Published: April 24 2008 03:00 | Last updated: April 24 2008 03:00

Ambac Financial lost more than a third of its stock market value yesterday as the bond insurer warned potential losses related to mortgage-backed securities could reach more than $3bn, vastly more than anticipated.

The company's ability to retain its crucial triple-A credit ratings is again under question amid concerns that credit ratings agencies may require Ambac to raise a new round of fresh capital.

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