by Calculated Risk on 12/19/2007 11:28:00 AM

Update: Only news story I could find so far from Reuters: S&P cuts ACA to "CCC" junk, acts on 6 bond insurers

Press Release: S&P Takes Rtg Actions On Six Bond Insurers (no link, hat tip Brian)

Standard & Poor's Ratings Services today announced various ratings actions on six financial guaranty insurance companies.

The rating actions were prompted by worsening expectations for the performance of insured nonprime residential mortgage backed securities and CDOs of asset backed securities. Based upon current stress test analysis, the details of which are being published simultaneously with this release, the affected companies may experience claims and/or capital consumptive negative rating transitions such that their capital resources may no longer be sufficient at their respective rating levels. Another consideration in the analysis, if there is a capital shortfall, is the magnitude of the shortfall and the extent to which the company has raised or is planning to raise new capital, and the viability of that capital plan.

Standard & Poor's will host a teleconference today at 3 p.m. EST.

... Our analysis of the impact of the ratings actions announced today is ongoing. We expect to post lists of affected structured finance issues later today. As we complete our analysis during the next few weeks, we may publish additional ratings changes.

ACA cut to CCC from A, AMBAC and MBIA outlooks revised to negative from stable. More to come ...