downgrades

Wunderlich Securities downgrades Viacom from "buy" to "neutral" due to weakening ad market.

The state will allow A.I.G. to borrow $20 billion from its subsidiaries to bolster its capital as it faces huge credit downgrades.

State insurance regulators and executives of A.I.G. rushed on Sunday to arrange a capital infusion to stabilize the company in the face of possible credit downgrades.

The bond insurer said that quarterly net income rose to $1.7 billion on gains on derivatives, but said that business had suffered from downgrades by Moody’s and Standard & Poor’s.

As investors digest a recent spate of rating downgrades for the bond insurers, concerns have surfaced about risks that could affect the last remaining insurers with triple-A credit ratings and further darken the outlook for the troubled industry.

StreetInsider.com Pre-Open Movers Movers:

SAVVIS Inc. (Nasdaq: SVVS) 26% LOWER; Reports Q1 results, guides below Wall Street.

Also a handful of downgrades.

Align Technology (Nasdaq: ALGN) 18% HIGHER; reports Q1 EPS of $0.07, 4 cents better than the analyst estimate of $0.03.

Revenues for the quarter came in at $74.8 million, versus the consensus of $72.02 million. For the second quarter 2008 (Q2 08), Align Technology expects net revenues to be in a range of $78.5 million to $81.5 million.

Earnings per diluted share for Q2 08 is expected to be in a range of $0.04 to $0.06.