Fitch Affirms CMG's 'AA' IFS Ratings.CHICAGO -- Fitch affirmed CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group Mortgage Insurance Company's (CMG) 'AA' insurer financial strength (IFS) rating. The Rating Outlook is Stable. CMG's rating reflects the company's strong competitive position within the credit union market, strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. earnings, high-quality balance sheet, explicit financial support from its parent companies, and the lower risk of its insured loan portfolio relative to other mortgage insurers. Partially offsetting these positives is CMG's small absolute size and potential competition in the company's credit union market niche from other mortgage insurers. CMG has produced consistent profitability over its recent past. This is attributable to the maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun) 1. the process of becoming mature. 2. attainment of emotional and intellectual maturity. 3. of its business, favorable trends in the residential real estate and employment markets, and good underwriting performance in a niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. with positive default characteristics. The company has been able to organically grow its capital base at a robust rate. As part of its review process, Fitch utilizes a proprietary capital model to stress test a mortgage insurer's risk-adjusted capitalization. The results of this model suggest that CMG would be able to meet its financial obligations under an 'AA' stress level. CMG is expected to continue to produce profitable results. Fitch also expects CMG to pay a dividend of approximately $35 million to its parents in 2006. Fitch will continue to closely monitor the impact of new market entrants and continues to believe that any loss of market share will likely be offset by increased mortgage activity within the credit union marketplace. CMG provides mortgage insurance to credit unions nationwide. The company is a joint venture between CUNA Cuna Chibchan-speaking Indian people who once occupied the central region of what is now Panama and the neighbouring San Blas Islands and who still survive in marginal areas. In the 16th century they lived in federated villages under chiefs who wielded considerable power. Mutual Investment Corp. (CUNA Mutual) and PMI See Private Mortgage Insurance. Mortgage Insurance Co. (PMI). CUNA Mutual and PMI provide CMG with explicit financial support through a capital maintenance agreement. Under the agreement, these companies each will contribute up to $37.7 million of capital to CMG in order to maintain CMG's ratio of risk-in-force to statutory capital at, or below, 18.0 to 1. On Dec. 31, 2005, CMG reported statutory assets of $320 million, statutory capital (including contingency reserves) of $275 million, $3.4 billion of net risk-in-force, and its ratio of risk-in-force to statutory capital was 12.2 to 1. Fitch affirms the following rating with Stable Outlook: CMG Mortgage Insurance Company --Insurer Financial Strength (IFS) affirmed at 'AA' Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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