Ambac Financial Group Inc (AMBC)

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NEWS!!!!!!!!!!

NEW YORK, Dec 2 (Reuters) - Standard & Poor's on Wednesday raised its counterparty credit rating on Ambac Assurance Corp, citing an improved financial position.
The rating for Ambac Assurance, the bond insurance unit of Ambac Financial Group <ABK.N>, was raised to CC, 10 levels below investment grade, from "selective default," S&P said.
"The developing outlook reflects our view that Ambac's financial position has improved, but that the potential for regulatory intervention remains high," S&P said.
New York-based Ambac, once the No. 2 U.S. bond insurer after larger rival MBIA Inc <MBI.N>, has struggled to write new business since large losses and the loss of its top-notch credit ratings last year.
S&P also affirmed its CC financial strength rating on Ambac and removed the rating from CreditWatch, where it was placed with positive implications on Nov. 18. (Reporting by Walden Siew; Editing by Leslie Adler) (([e-mail]; [phone]; Reuters Messaging: [e-mail]))