By ANDREW DOWELL
March 5, 2008 1:53 p.m.

NEW YORK -- Ambac Financial Group Inc., the battered No. 2 U.S. bond insurer, said Wednesday it will try to raise $1.5 billion in fresh capital to defend the key AAA rating at subsidiary Ambac Assurance.

Wall Street recovered nearly 190 points after Standard & Poor's affirmed its ratings for Ambac Financial Group Inc. and MBIA Inc., raising hopes that troubled bond insurers will emerge from the credit market crisis on solid footing.