(The following statement was released by the rating agency)
NEW YORK, August 12 (Fitch) Subpar results posted last quarter
has sent credit
default swap (CDS) spreads on Genworth Financial Inc. to their
since earlier this year, according to the latest CDS case study
Five-year CDS on Genworth have come out 56% over the past month,
levels seen since February. After pricing consistently in 'BBB-'
April, the market is now pricing Genworth's credit risk in line
levels, or in speculative grade territory.
'In addition to its second quarter results, souring market
Genworth also seems to stem from their recent announcement that
it will be
reviewing the adequacy of its long-term care insurance claims
Director Diana Allmendinger.
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