Ambac (ABK) has been placed on review from Moody’s for a possible downgrade
From the SEC filing
On September 18, 2008, Moody’s Investors Service (“Moody’s”) announced that it was placing the ratings of Ambac Financial Group, Inc. (“Ambac”) and its subsidiaries on review for downgrade. Ambac expects to continue to work with Moody’s as the rating agency seeks to apply its most recent mortgage-related assumptions to unique attributes of the individual transactions in Ambac’s portfolio. Moody’s stated that because Ambac is meaningfully exposed to the risk of US subprime mortgages and other residential mortgage products, the revised assumptions are expected to have a significant impact on Ambac’s capital position and multi-notch downgrades are possible.
Now, this would be a legitimate reason to short this stock……but you can’t now.
Disclosure (“none” means no position):none
Visit the ValuePlays Bookstore for Great Investing Books