Moody’s (MCO) give credit rating of "Aa1" to both Ambac (ABK) and MBIA (MBI). But, no one else on Wall St. seems to see it that way.

According to Reuters "at Thursday’s close, Ambac’s swaps implied a rating of "Caa1," seven levels below investment grade and 14 notches below its actual rating."

The stock market also seems to believe that Ambac (ABK) is hardly "investment grade." Shares in the bond insurance company are down to under $26 today, off over 12%. They are also down from a high of $96.10.

It appears that some traders don’t think Ambac is going to make it out of the current credit crisis alive.

Douglas A. McIntyre