Standard & Poor’s Ratings Services has lowered bond insurer Ambac Assurance Corp.’s financial strength rating three notches to “A” due to residential mortgage sector exposures that have caused losses greater than those of Ambac’s competitors.

Standard & Poor’s also lowered the senior debt and hybrid security of New York-based Ambac’s holding company, Ambac Financial Group Inc., to “BBB” and “BB-plus” from “A” and “BBB-plus” respectively.

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