AMBAC FINANCIAL GROUP BACKS DALLAS/FORT WORTH HOSPITAL
News Release
November 8, 2000 - New York, NY - The board of directors of Dallas/Fort Worth Medical Center (Grand Prairie, Texas), a hospital with municipal bonds insured by Ambac Assurance Corporation, announced yesterday that the hospital would cease admitting patients and would close. Ambac currently has $20.3 million in net par exposure related to the Dallas/Fort Worth Medical Center's Series 1994 Hospital Revenue Refunding Bonds issued through the Grand Prairie Health Facilities Development Corporation, Texas. In 1994, in recognition of the hospital's fiscal stress, Ambac first established a loss reserve for this credit. Ambac has ample reserves to offset any losses incurred from the hospital's closing and there will be no impact on Ambac's earnings.
As of September 30, 2000, Ambac's total insured portfolio was $263.5 billion. Since becoming a public company in 1991, Ambac has had net paid losses of $4.9 million, representing 0.2% of net premiums written during the same period. Since 1971 Ambac has paid approximately $2.9 million in net claims on health care credits. Ambac's current health care portfolio is $17.9 billion.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).