Standard & Poor’s Tuesday evening slashed Ambac Assurance Corp.’s financial-strength rating to junk, saying assumed losses on insured mortgage bonds could wipe out the company’s equity.

Ambac’s rating was cut to CC with a developing outlook from BBB, where it had been on negative credit watch.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.