S&P may cut mortgage insurers on jobs, housing

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.

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)