• Most Popular
  • Most Shared

S&P may cut mortgage insurers on jobs, housing

Fri Dec 5, 2008 6:08pm EST

Stocks

   

NEW YORK, Dec 5 (Reuters) - Standard & Poor's on Friday said it may cut its ratings on five mortgage insurers, citing their exposure to the still worsening employment and housing markets.

Stocks  |  Bonds  |  Global Markets

The insurers are Old Republic International Corp (ORI.N), The PMI group Inc (PMI.N), MGIC Investment Corp (MTG.N), Radian Group Inc (RDN.N) and Genworth Financial Inc (GNW.N).

"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 to refinance debt maturities, remain compliant with covenants, and maintain appropriate capitalization to remain going concerns," said S&P analyst James Brender.

S&P currently rates the mortgage units of Old Republic "A-plus," the fifth highest investment grade, MGIC one notch lower at "A" and PMI one step lower than that at "A-minus."

Radian's mortgage arms are rated "BBB-plus," the eighth highest investment grade, and Genworth is ranked "AA-minus," the fourth highest investment grade.

(Reporting by Karen Brettell; Editing by Diane Craft)

Stocks
Bonds
Global Markets


More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    PICTURES
    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    Oddly Enough
    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article 

    Global Markets