Moody’s extends ratings review of Genworth debt and mortgage business
- September 28, 2012
Moody’s Investors Service Inc. has extended its review of Genworth Financial’s senior unsecured debt rating for a potential downgrade.
Rating agency also extended its review of the U.S. mortgage insurance business at Genworth, a Henrico County-based, Fortune 500 company.
A one-notch downgrade of the company’s senior unsecured debt would change its status from “investment grade” to “junk.”
In response to Moody’s announcement, Genworth said it continues to work with the ratings agency on its evaluation of the holding company and its U.S. mortgage insurance business.
“We are acting with focus and urgency and believe that the actions we are pursuing will improve returns, strengthen the company’s financial position, support a stronger credit profile and drive greater value for our shareholders,” Martin P. Klein, acting chief executive officer and chief financial officer, said in a statement.
The company said it is pursuing various plans to manage the U.S. mortgage insurance business. Genworth repeated its position that a run-off, sale or spin-off of the mortgage business would not be the best options for shareholders at this time.
Moody’s announced the reviews in June when it reduced the company’s financial strength rating of the company’s U.S. life insurance division.