GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
716651

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Lee Doyle

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

Moody's continues it's review for downgrade of Genworth & its US MI companies

Posted by on in Consumer Warnings
  • Font size: Larger Smaller
  • Hits: 2266
  • 0 Comments
  • Print
The information is "freely" available online for public discourse , so maybe they should go talk to Julian Assange? --and since we're not retail clients!.--
 
Global Credit Research - 28 Sep 2012

--Approximately $4.3 billion of debt affected

New York, September 28, 2012 -- Moody's Investors Service continues to review for downgrade the ratings of Genworth Financial, Inc. ("Genworth"; NYSE: GNW, senior debt at Baa3) and the insurance financial strength (IFS) ratings of its US Mortgage Insurance (MI) operating companies. Moody's initially placed the ratings on review for downgrade on June 27, 2012.

 

RATINGS RATIONALE

Holding Company

 

Commenting on the continuation of the review for downgrade of Genworth, Senior Vice President Scott Robinson said: "Moody's will continue to focus on the evaluation of holding company financial flexibility over the near to medium term. We will consider management actions and plans to enhance financial flexibility, limit the potential downside impact of the lower-rated US MI business on the rest of the operations, as well as the magnitude of potential parental support for the MI business."

 

The rating agency noted that Genworth's Baa3 senior debt rating is currently 3 notches lower than the A3 IFS ratings of the company's life insurance operating entities, the standard notching practice for insurance groups. Prior to the June 27 rating action in which the IFS rating of the life insurance operating entities was lowered by one notch, the notching differential between the life insurance operating entities and the holding company was 4 notches, a reflection of the lower credit profile and downside risks of the US MI operations, including its potential need for additional support.

 

US Mortgage Insurance (GMICO)

Genworth Mortgage Insurance Corporation's (`GMICO'- collectively all rated US MI operating company affiliates) Ba1 IFS rating was also placed on review for downgrade in the June 27 rating action due to the uncertainty about the strength of its parent (under review for possible downgrade) and the likelihood and magnitude of future capital support. The review will evaluate GMICO's ability to continue writing new business given the firm's high risk to capital level and parameters of regulatory and counterparty forbearance. Other issues in consideration are the firm's contemplated structural alternatives.

 

GMICO's Ba1 IFS rating reflects the firm's modest capitalization, continued dependence on regulatory forbearance to write new business and some implicit support from its parent. The rating also takes into consideration the weak credit trends in the US housing market, substantial remaining uncertainty about the role of private mortgage insurers in the post mortgage-reform environment and improved underwriting prospects for GMICO following the exit of two competitors.

 

Rating Drivers - holding company

According to Moody's, the following could lead to a confirmation of the holding company's ratings: 1) De-linkage from the US MI operations so that a downside scenario would not impact holding company creditors or determination that a downside scenario would have a modest impact on the group; 2) Capital actions that enhance holding company financial flexibility without hurting long-term earnings power of the company. On the other hand, the following could result in a downgrade of the holding company's ratings: 1) Failure to de-link the US MI from holding company creditors or the expectation that a downside scenario would have more than a modest impact on the group; 2) Failure to take capital actions that enhance holding company financial flexibility without hurting long-term earnings power of the company.

 

Rating Drivers -- US mortgage insurance

The following factors could lead to confirmation of the ratings of the US mortgage insurance subsidiaries: 1) Greater certainty about ability to maintain new business flows over the medium term (12-24 months); 2) Parent's willingness to provide capital support; 3) Significant improvement in rate of new delinquencies and/or cures; 4) Statutory loss ratio less than 100%; and 5) A regulatory framework that improves the market opportunity for private mortgage insurers.

 

Conversely, the following factors could lead to a downgrade of GMICO: 1) Weakening parental support of the US MI operation; 2) Non-renewal of GSE and regulatory agreement/forbearance when they expire; 3) Restructuring of operations that would result in reduced new business flows for the flagship company, Genworth Mortgage Insurance Corporation; and 4) Risk to Capital greater than 40x

 

The principal methodologies used in this rating were "Moody's Global Rating Methodology for Life Insurers," published in May 2010 and "Moody's Global Rating Methodology for the Mortgage Insurance Industry" published in February 2007.

 

Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

 

The following ratings remain on review for downgrade:

 

Genworth Financial, Inc.— senior unsecured debt rating at Baa3, junior subordinated debt rating at Ba1(hyb), senior unsecured shelf rating at (P)Baa3, subordinate shelf rating at (P)Ba1, preferred shelf rating at (P)Ba2, short-term debt rating for commercial paper at P-3;

 

Genworth Mortgage Insurance Corporation—insurance financial strength rating at Ba1;

 

Genworth Residential Mortgage Insurance Corporation of NC—insurance financial strength rating at Ba1.

 

Genworth Seguros de Credito a la Vivienda—insurance financial strength rating at Baa3, national scale insurance financial strength rating at Aa3.mx

 

Genworth Financial, Inc., headquartered in Richmond, Virginia, reported total assets of $113 billion and total shareholders' equity of $17.0 billion as of June 30, 2012.

 

Moody's insurance financial strength ratings are opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations.

 

Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in March 2011 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings."

 

Visit Moody's website at www.moodys.com for more information.

 

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

 

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

 

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

 

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

 

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

 

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

 

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

 

 

 

Scott Robinson
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Robert Riegel
MD - Insurance
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001.

 
"This document is intended to be provided only to "wholesale clients" ---and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients". ["retail clients" don't look]
 
http://www.moodys.com/research/Moodys-continues-its-review-for-downgrade-of-Genworth-and-its--PR_256274
 
Last modified on
Rate this blog entry:

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Tuesday, 07 July 2020