After reporting a $1.66 billion loss for the first quarter, Ambac Financial Group Inc. is once again in a position of having to defend itself to a market and investors asking a single question: Will Ambac Assurance Corp. be able to keep its two triple-A ratings without raising more capital?

The company certainly thinks so. In a conference call last Wednesday to discuss the first-quarter earnings, Ambac executives said despite first-quarter losses, the monoline's capital remains in excess of the triple-A threshold for both Standard & Poor's and Moody's Investors Service.

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