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Fitch Assigns 'AA' IFS Rating to Private Residential Mortgage Insurance Corporation.

NEW YORK -- Fitch Ratings assigns an Insurer Financial Strength (IFS) rating of 'AA' to Private Residential Mortgage Insurance Corporation (PRMIC). PRMIC is a wholly owned subsidiary of Genworth Mortgage Holdings LLC (GMH), the holding company for Genworth Financial Inc.'s (GNW, Long-Term Issuer Default Rating: 'A+') U.S. mortgage insurance operations. GMH's main operating subsidiary is Genworth Mortgage Insurance Corp. (GMICO, IFS: 'AA'). PRMIC has been reactivated in order to avoid any potential regulatory issues related to insuring certain types of loans that would not be permitted under GMICO's existing monline insurance charter. The Ratings Outlook for PRMIC, GMICO, and GNW is Stable.

PRMIC's rating is primarily based on a strong capital support agreement provided by GMICO, in which GMICO provides an irrevocable and unconditional guaranty on all of PRMIC's insurance policies. PRMIC's rating is also based on its ownership by GMH, sound proposed business strategy, and effective credit quality underwriting guidelines. At June 30, 2006 PRMIC had $15.6 million of statutory capital supporting $116.3 million of pool mortgage insurance risk in force.

Based in Raleigh, NC, GMICO is under the umbrella of GNW, and insurance holding company with operations focused in life insurance, European payment protection, and U.S. and international mortgage insurance. GMICO's IFS rating of 'AA' reflects the company's strong excess capital given the current rating, good credit performance of the insured portfolio, solid financial returns over an extended period of time, and implicit support from GNW. With $3.2 billion of consolidated statutory assets and $2.8 billion of statutory capital at June 30, 2006, GMICO and its mortgage insurance affiliates maintain healthy excess capital on a stand-alone basis at an 'AA' IFS rating that comfortably supports its $22.5 billion of U.S. risk in force and capital required by its international operations. At June 30, 2006, GNW maintained assets of $103.6 billion and shareholders' equity of $12.2 billion.

Fitch assigns the following rating with a Stable Outlook:

Private Residential Mortgage Insurance Corporation

--Insurer financial strength (IFS) 'AA'

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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 are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:Oct 25, 2006
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