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GE
Mortgage Insurance Issues Statement on
S&P Credit Watch Action |
by:
|
Contact:
Terry Souers of GE Mortgage Insurance, 919-846-4459
or terry.souers@ge.com
RALEIGH, N.C., June 27 /U.S. Newswire/ --
GE Mortgage Insurance today released the
following statement in response to the decision
by Standard and Poor's to put GE Mortgage
Insurance on CreditWatch:
S&P made its decision despite the fact that
our capital position has never been stronger.
The S&P action is based on a change in S&P's
rating methodology, not on any change in
the financial condition of GE Mortgage Insurance.
S&P noted that changes within its rating
criteria "now limit the rating support for
a strategically important subsidiary to
one notch below the parent's rating" unless
there is a significant explicit support
agreement from a higher rated parent. We
believe we have such an agreement from GE
Capital, which is rated AAA by Standard
& Poor's. Our implicit and explicit support
from GE Capital has not changed.
GE Mortgage Insurance always has been one
of the strongest capitalized participants
in the mortgage insurance industry and continues
to hold capital well in excess of S&P "AAA"
requirements. In fact, we have operated
with the lowest Risk to Capital Ratio (the
industry measure of capitalization given
a company's portfolio of risk) in the industry
for the last five years.
The other two rating agencies, Moody's and
Fitch, continue to recognize the unmatched
financial strength of GE Mortgage Insurance.
Both agencies recently reaffirmed their
ratings for the company at "AAA," their
highest levels.
We appreciate the fact that Standard & Poor's
sees GE Mortgage Insurance as having "strong
fundamentals" and "very strong earnings
and market position, extremely strong capitalization,
and deep and experienced management." Those
factors make it clear why GE Insurance includes
credit enhancements such as mortgage insurance
in its vision for the future.
GE Mortgage Insurance (Web site: http://www.gemortgageinsurance.com)
is part of GE Insurance, a global family
of insurance and reinsurance businesses
with $13.6 billion in premiums and assets
of $188 billion. GE Insurance provides life
insurance, retirement income products, property
and casualty insurance, risk prevention
services, mortgage insurance, and selective
financial guarantee insurance. GE Insurance
is part of General Electric Company, a diversified
services, technology and manufacturing company
with operations worldwide.
http://www.usnewswire.com/
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