TEXT-Fitch on CE Electric UK, Northern Electric, Yorkshire

(The following statement was released by the ratings agency)

March 17 - Fitch Ratings has affirmed CE Electric UK Funding Company (CEUKFC), Northern Electric Finance plc and Yorkshire Electricity Distribution plc (YEDL) insured bonds guaranteed by AMBAC Financial group, Inc and Ambac Assurance Corp (Ambac) and its financial guaranty subsidiaries, removing them from Rating Watch Negative (RWN), as listed below.

This rating action is a direct consequence of Fitch affirming Ambac's Insurer Financial Strength (IFS) at 'AA' and removing it from RWN on 12 March 2008. The outlooks for Ambac and the affected bonds are Negative. The bonds affected by this rating action are: CEUKFC: GBP200m (XS0082800375) due 15 December 2022: affirmed at 'AA'; Negative Outlook assigned Northern Electric Finance plc: GBP150m (XS0218520582) due 4 May 2035: affirmed at 'AA'; Negative Oulook assigned YEDL: GBP200m (XS0218526274) due 4 May 2035: affirmed at 'AA'; Negative Oulook assigned

The underlying senior unsecured ratings of the above listed entities remain unchanged. All other bonds of the above mentioned entities and their affiliates not insured by Ambac are not affected by this action. (New York Ratings Team)