Bond insurers boosted by upbeat report

Shares of insurers MBIA Inc. and Ambac Financial Group Inc. rallied in early trading today following a positive report from ratings agency Standard and Poor’s. New York-based Ambac opened at $5.70, the highest level so far of the day. Meanwhile, its Armonk, N.Y.-based rival MBIA kicked off Friday at $11.12 per share, rising to $11.34 within a few minutes. The stock price jumps followed an announcement yesterday from New York-based S&P that New York-based bond insurers MBIA Insurance Corp. and Ambac Assurance Corp. are maintaining their AA ratings. Capital levels are “well above the level required for an AA rating” at MBIA Insurance, while Ambac Assurance’s attempts to cancel coverage on mortgage-related debt are “starting to bear fruit,” according to S&P. Nevertheless, the outlook on both companies’ ratings, which were slashed from AAA in June, remains negative.