PMI Group's 'AA' counterparty credit ratings placed on negative watch - S&P |
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Published
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Mon, 22 Oct 2007 07:04
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has placed its 'AA' counterparty credit and financial strength ratings on PMI Mortgage Insurance Co on negative watch after the niche bond surety company said it had incurred losses of around 350 mln usd in the third quarter for its domestic mortgage insurance operations compared with 80 mln usd in the same quarter of the prior year.S&P said it estimates PMI's reserve per primary domestic default was less than 9,500 usd as of June 30, 2007, compared with its estimate of the industry's median of almost 13,000 usd.The ratings agency also placed the 'AA' counterparty credit and financial strength ratings of PMI Mortgage Insurance Co Ltd and PMI Mortgage Insurance Ltd on negative watch.S&P said the 'AA' financial strength rating on PMI Insurance Co and the 'A' counterparty credit rating on PMI Group Inc remain on negative watch.The ratings agency said in its view PMI's reserves are less conservative than its peers, but still adequate because of its very strong loss mitigation capabilities.S&P said its primary concern is over PMI's operating performance in the next two years, and said it expects PMI to report underwriting losses in 2008.TFN.newsdesk@thomson.comvsh/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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