AMBAC FINANCIAL GROUP HAS INSURED EXPOSURE TO SOUTHERN CALIFORNIA EDISON AND PACIFIC GAS & ELECTRIC
News Release
December 21, 2000 - New York, NY: Ambac Financial Group, Inc. (Ambac) announced today that it has $75.1 million in insured net par exposure outstanding to Southern California Edison. The bonds are secured by a first mortgage or lien on substantially all of the property and franchises now owned by Southern California Edison. Ambac has $72.6 million in insured net par exposure outstanding to Pacific Gas & Electric. These bonds are also secured by a first mortgage lien. Both Southern California Edison and Pacific Gas & Electric have been warned by Standard & Poor's that their ratings might drop below investment grade.
"The secured nature of our exposure, coupled with the essentiality of the services the companies provide, cause us to be confident that the likelihood of any permanent material loss is remote," said Robert J. Genader, Vice Chairman. "On the other side of the coin, this difficult situation serves as a strong reminder as to the value of bond insurance," he continued.Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Assurance Corporation is the principal operating subsidiary of Ambac Financial Group, Inc. Ambac Assurance, a leading guarantor of municipal and structured finance obligations, has earned triple-A ratings, the highest ratings available from Moody's Investors Service, Inc., Standard & Poor's Credit Markets Services, Fitch and Rating and Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).