S&P cuts five U.S. mortgage insurer ratings

NEW YORK Dec 22 (Reuters) - Standard & Poor's cut credit ratings of five U.S. mortgage insurers on Tuesday, citing insurer losses that exceeded the rating agency's previous forecasts.

In a largely expected move, S&P lowered its ratings on several mortgage insurance groups, including Old Republic International Corp (ORI.N), PMI Group Inc PMI.N, Radian Group Inc RND.N, Genworth Financial Inc (GNW.N), and United Guaranty, whose parent is American International Group Inc (AIG.N).

The rating company, which also said more cuts are possible, said in October that it was considering the downgrades. For details, see [ID:nN27244487]

"Although the macroeconomic environment is showing signs of improvement, the recession appears to have had a deeper impact on mortgage insurance companies' portfolios than we had expected," S&P said in a statement.

S&P cut ratings on Republic Mortgage Insurance Co to BBB-minus, the lowest investment-grade rating, from A-minus, the fourth lowest investment-grade level.

It also cut ratings on PMI Mortgage Insurance Co and Radian Mortgage Insurance Inc by one notch to B-plus, the fourth highest junk rating, from BB-minus.

S&P cut Genworth to BBB-minus, the lowest high grade, from BBB-plus, the third lowest investment grade.

S&P cut ratings on United Guaranty Mortgage Indemnity Co by one notch to BBB, the second lowest investment grade, from BBB-plus. (Reporting by Walden Siew; Editing by Padraic Cassidy)