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TEXT-S&P cuts MGIC Investment Corp. Jr. Sub debt to 'C'
September 12, 2012 / 5:25 PM / in 5 years

TEXT-S&P cuts MGIC Investment Corp. Jr. Sub debt to 'C'

Sept. 12 - Standard & Poor’s Ratings Services said today that it lowered its issue rating on MGIC Investment Corp.’s 9% convertible junior subordinated debentures to ‘C’ from ‘CC’. The issuer ratings on MGIC Investment Corp. (MGIC), Mortgage Guaranty Insurance Corp., its other operating companies, and the outstanding 2015 and 2017 debentures are unaffected by this rating action. On Sept. 11, 2012, MGIC sent notice to the holders of the debentures that it planned to defer to Oct. 1, 2022, the interest payment that was scheduled to be paid on Oct. 1, 2012. Under the terms of the indenture, MGIC has the option to defer interest for one or more consecutive interest periods up to 10 years without giving rise to an event of default. We assign a ‘C’ rating to subordinated debt instrument obligations on which cash payments have been suspended in accordance with the instrument’s terms. RELATED CRITERIA AND RESEARCH Standard & Poor’s Ratings Definitions, June 22, 2012 RATINGS LIST MGIC Investment Corp. (Unsolicited Ratings) Counterparty Credit Rating CCC/Negative/-- Ratings Lowered To From MGIC Investment Corp. Junior Subordinated Debt C CC This unsolicited rating(s) was initiated by Standard & Poor‘s. It may be based solely on publicly available information and may or may not involve the participation of the issuer. Standard & Poor’s has used information from sources believed to be reliable based on standards established in our Credit Ratings Information and Data Policy but does not guarantee the accuracy, adequacy, or completeness of any information used. Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor’s public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Primary Credit Analyst: Ron A Joas, CPA, New York (1) 212-438-3131;

ron_joas@standardandpoors.com Secondary Contact: Jeremy Rosenbaum, CFA, New York (1) 212-438-5260;

jeremy_rosenbaum@standardandpoors.com

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