Leading market position and franchise in Australia Strong capitalization Solid earnings performance Concentration in business lines Business growth dependent on prevailing economic conditions Reduced financial flexibility Offsetting these factors are the company's concentrated suite of lenders' mortgage insurance (LMI) products, which rely on home loan market performance and prevailing economic conditions, and its limited financial flexibility given Genworth group's recent deterioration in creditworthiness. The rating on GFMI's wholly owned 'runoff' subsidiary, Genworth Financial Mortgage Indemnity Ltd., is 'A-' with a stable outlook. GFMI's rating can also be up to four notches higher than its sister company and reinsurance provider, Genworth Mortgage Insurance Corp. (GMIC; BBB+/Watch Neg/--). Should these tolerances be breached, a rating action would not necessarily occur--but the rating
