ACA Capital (ACA) Said CNBC Reports "Factually Incorrect"
ACA Capital Holdings, Inc. (NYSE: ACA) responded to CNBC's commentary, saying CNBC's discussion of ACA Capital's CDO exposures was factually incorrect in several important respects.
ACA Capital said its $25 billion of exposure to CDOs referenced by CNBC were all underwritten by the Company with significant cushions above the initial "AAA" rating rather than "A" as reported by CNBC.
ACA Capital also said it is not correct that many of these insured risks are now lower in credit quality than "A" as reported. The company said they remain overwhelmingly at the "AAA" level and the Company continues to view the likelihood of loss payments in the near term as highly remote.
Yesterday, CNBC said ACA Capital's credit rating could be cut and the company could become insolvent.
ACA Capital said its $25 billion of exposure to CDOs referenced by CNBC were all underwritten by the Company with significant cushions above the initial "AAA" rating rather than "A" as reported by CNBC.
ACA Capital also said it is not correct that many of these insured risks are now lower in credit quality than "A" as reported. The company said they remain overwhelmingly at the "AAA" level and the Company continues to view the likelihood of loss payments in the near term as highly remote.
Yesterday, CNBC said ACA Capital's credit rating could be cut and the company could become insolvent.
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