Fitch Assigns an 'A+' to PMI Group Senior Notes.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned an 'A+' rating to $400 million of senior notes issued by The PMI Group, Inc. (TPG TPG Texas Pacific Group TPG Tapping TPG Transports Publics Genevois (Geneva, Switzerland public transportation) TPG Test Pattern Generator TPG TNT Post Group TPG Trésorier Payeur Général ). The issue consists of $250 million of senior notes due 2016 and $150 million due 2036. TPG expects to use $360 million of the proceeds to refinance contingent convertibles debentures that became callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. on July 15, 2006. Total debt outstanding will temporarily increase by approximately $40 million dollars until Nov. 15, 2006 when an additional $63 million of currently outstanding senior debt matures. Additionally, Fitch has affirmed TPG's 'A+' senior debt and long-term ratings and the 'A' rating assigned to the trust preferred securities of PMI See Private Mortgage Insurance. Capital I. Fitch also affirmed the 'AA+' insurer financial strength (IFS) ratings of PMI Mortgage Insurance Co. (PMI), the primary mortgage insurance subsidiary of TPG. The Rating Outlook is Stable for all ratings. E[acute accent]PMI's ratings reflect the company's solid market position in the U.S. mortgage insurance industry, strong excess capital given the current rating, good credit performance of the insured portfolio, and solid financial returns over an extended period of time. The financial profile of the parent company, TPG, also derives diversity from international mortgage insurance operations and operations outside of mortgage insurance, primarily financial guaranty. E[acute accent]U.S. mortgage insurance operations comprised 66% of TPG's total net income as of the year-to-date period ending June 30, 2006. Like the majority of the U.S. mortgage insurance industry, earnings growth at TPG's mortgage insurance operations has been negatively impacted in the past few years by lessened demand for insurance as a result of the proliferation of 'mortgage insurance avoidance' products being offered in the marketplace, the majority of which are being provided by mortgage originators, PMI's primary customer base. E[acute accent]The PMI Group, Inc. (NYSE NYSE See: New York Stock Exchange : PMI) headquartered in Walnut Creek, California Walnut Creek is a largely affluent suburb several miles east of Oakland in Contra Costa County, California, USA, in the East Bay region of the San Francisco Bay Area. While not as large as the neighboring Concord, Walnut Creek serves as the business and entertainment hub for the is an international provider of credit enhancement products that promote homeownership and facilitate mortgage transactions in the capital markets. Through its wholly owned subsidiaries and unconsolidated strategic investments, TPG offers residential mortgage insurance and credit enhancement products domestically and internationally as well as financial guaranty insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. . As of June. 30, 2006, TPG reported consolidated total assets of $5.3 billion and total shareholders' equity of $3.3 billion. E[acute accent]The following ratings are affected: E[acute accent]The PMI Group, Inc. E[acute accent]-- $63 million 6.75% senior notes due Nov. 15, 2006 Affirmed 'A+'/Stable; E[acute accent]-- $345 million 5.568% senior notes due Nov. 15, 2008 Affirmed 'A+'/Stable; E[acute accent]-- $250 million 6.00% senior notes due Sept. 15, 2016 Assigned 'A+'/Stable; E[acute accent]-- $360 million 2.50% senior convertible debentures July 15, 2021 Affirmed 'A+'/Stable; E[acute accent]-- $150 million 6.625% senior notes due Sept. 15, 2036 Assigned 'A+'/Stable; E[acute accent]PMI Capital Trust I E[acute accent]-- $52 million 8.309% trust preferred securities Feb. 1, 2027 Affirmed 'A'/Stable; E[acute accent]PMI Mortgage Insurance Co. E[acute accent]-- Insurer financial strength Affirmed 'AA+'/Stable. E[acute accent]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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