Moody's Investors Service reiterated Monday that the possible bankruptcy of Ambac Financial Group is unlikely to affect policyholders of its bond insurer subsidiary. In addition, policyholders will benefit from recent growth in the insurer’s statutory surplus, the rating agency said.

Ambac Assurance Corp., the Wisconsin-based, junk-rated municipal bond insurer, maintains the third-largest insured public finance portfolio in the industry with $213 billion outstanding as of June 30.

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