Ambac Financial Group CEO has Positive Outlook

Ambac Financial Group, Inc.  (Public, NYSE:ABK) CEO David Wallis is painting a hopeful picture during an exclusive interview with Bloomberg news, despite shares being down 93% YTD.

Shares of Ambac Financial Group Inc. lost more than a fifth of their market value yesterday, amid concern about the bond insurer's capital position.

Shares of Ambac are trading today in the $1.70 range.

On Wednesday Ambac reported a wider Q3 loss and its debt rating was downgraded to junk by Moody's Investors Services.

Ambac shares fell 24% yesterday, today they are up 15%, investing in ABK is almost like playing the Penny Stock market.

"It appears that this rating action has been precipitated by our earnings announcement," David W. Wallis, president and chief executive of Ambac, said in a statement Thursday. "It is disappointing that Moody's has come to a ratings conclusion without the benefit of completing its own analysis of our portfolio."

Analysts lowered estimates and price targets on the company, with some projecting the New York-based firm will need billions in additional capital.

"Ambac's current capital position is solid but its longer-term viability is in serious jeopardy," CreditSights analyst Rob Haines wrote in a research note to clients.

Haines said Ambac will need to post an additional $3.2 billion in collateral, which in turn, could leave the company with at least a $2.1 billion cash shortfall in its financial services unit.