Ambac Financial Group Inc. Wednesday night received approval from Wisconsin regulators to use resources at bond insurer Ambac Assurance Corp. to provide support to its financial services unit, which faces a shortfall of $3.2 billion as a result of a recent downgrade to the financial guarantor.

Moody's Investors Services Tuesday downgraded Ambac Assurance Corp. to Baa1 with a developing outlook from Aa3 on review for downgrade, triggering terminations of contracts and the need for collateral postings in the financial services portfolio.

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