Moody's downgrade of Radian Group's mortgage insurance subsidiaries comes as no surprise to the company after Standard & Poor's made a similar move last week, a company spokesman said.
Moody's Investor Service yesterday downgraded several of the company's subsidiaries, saying the action was the result of a review initiated in January. The rating agency said that despite some business improvements, risk exposure prior to 2008 "has eroded capitalization and those exposures remain vulnerable to further economic deterioration."
Among the downgrades, the insurance financial strength of Radian Guaranty Inc. went to "A2″ from "Aa3″; Radian Insurance Inc. went to "Baa1″ from "Aa3″; and Amerin Guaranty Corp. went to "A2″ from "Aa3." All the ratings were given a negative outlook.
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