NEW YORK, NY--Standard & Poor's Ratings Services has placed its ratings on five major U.S. mortgage insurers and their core and dependent foreign subsidiaries on CreditWatch with negative implications.These groups are Old Republic, PMI, MGIC, Radian, and Genworth.
Standard
& Poor's also placed its ratings on Radian Asset Assurance Inc. on CreditWatch. Standard & Poor's is still evaluating the impact of this CreditW
atch on obligations Radian Asset guarantees.The ratings on some securities could be placed on CreditWatch negative, but we will not lower any of them.
"The CreditWatch placements reflect greater deterioration in the employment and housing markets than we had anticipated when we last conducted an extensive review of the mortgage insurance sector in late August," explained Standard & Poor's credit analyst James Brender.
"We also have concerns that mortgage insurers' poor operating results--coupled with the disruptions in the capital markets--will prevent them from obtaining additional capital needed t
o refinance debt maturities, remain compliant with covenants, and maintain appropriate capitalization to remain going concerns."
Media Contact: Jeff Sexton, New York, (1) 212-438-3448, jeff_sexton@standardandpoors.com
Analyst Contacts:
James Brender, New York (1) 212-438-3128
Rodney A Clark, FSA, New York (1) 212-438-7245
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