S&P Announces: General Electric Mortgage Insurance Corp. and Affiliates 'AA' Ratings Affirmed; Outlook Stable.
NEW YORK--(BUSINESS WIRE)--Nov. 18, 2003
On Nov. 18, 2003, Standard & Poor's Ratings Services affirmed its 'AA' counterparty credit and financial strength ratings on General Electric Mortgage Insurance Corp. (GEMICO) and two of GEMICO's Australian affiliates: GE Mortgage Insurance Pty Ltd. and GE Capital Mortgage Insurance Corp. (Australia) Pty Ltd. At the same time, Standard & Poor's affirmed its 'AA' financial strength rating on GEMICO's U.K. affiliate, GE Mortgage Insurance Ltd. The outlook on all of these companies (collectively referred to as GEMICO Group) remains stable.
The affirmations follow General Electric Co.'s (NYSE:GE) announcement today that it intends to form a new holding company -- Genworth Financial Inc. -- which will be spun off from GE and pursue an IPO in the first half of 2004. The companies of the GEMICO Group will be subsidiaries of Genworth, as will most of GE's life insurance operations. Other than the expected change in ownership structure, no material changes to the GEMICO Group are expected.
The ratings on GEMICO Group are based on the group's very strong fundamentals, with no imputed rating support from GE. GEMICO Group has very strong earnings, very strong market positions, extremely strong capitalization, and deep and experienced management teams dedicated to conservative credit quality books of business.
Standard & Poor's expects that each company will attempt to optimize capital to enhance ROE. However, Standard & Poor's also expects capitalization and operating results to remain commensurate with and supportive of the current rating level based on each company's historically strong stand-alone characteristics.
General Electric Mortgage Insurance Corp. GE Mortgage Insurance Pty Ltd. GE Capital Mortgage Insurance Corp. (Australia) Pty Ltd. Counterparty credit rating AA/Stable/-- Financial strength rating AA/Stable GE Mortgage Insurance Ltd. Financial strength rating AA/Stable
Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Credit Ratings Lists. Standard & Poor's ratings appear alphabetically.
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|Date:||Nov 18, 2003|
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