Ambac Financial seeks investors in Everspan unit to bolster ratings

By Susanna Moon

Chicago, May 11 - Ambac Financial Group, Inc. said the process of launching Everspan Financial Guarantee Corp. has been delayed due to rating agency concerns over separating it from its parent, Ambac Assurance Corp.

The company said that Everspan has been carefully structured to separate it from Ambac Assurance. Nonetheless, the agencies have said it would view a minority investment from an independent third party to ensure Everspan's separateness as positive in their ratings decision.

Ambac said it is in discussions with external parties about a potential investment in Everspan.

"Everspan, given its experienced team and clean balance sheet, remains well-positioned to address the existing severe capacity shortage for financial guarantees in the municipal finance market," Douglas Renfield-Miller, chief executive officer of Everspan, said in a press release.

"The case for bond insurance remains compelling," he said. "We hope that Everspan will be able to meet market needs in the near future."

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