One of CMG Mortgage Insurance Co.'s parents--PMI Mortgage Insurance Co. (PMI MI), which handles some of its underwriting and administrative functions--was recently downgraded. We believe the downgrade of PMI MI could affect CMG MI's financial strength, along with rising defaults and claims paid, so we are lowering the rating on CMG MI to 'A' from 'AA-'. Although CMG MI's results are strong relative to peers', the negative outlook reflects the difficult conditions for CMG MI in the credit union U.S. mortgage insurance market. On May 8, 2009, Standard&Poor's Ratings Services lowered its counterparty credit and financial strength ratings on CMG Mortgage Insurance Co. (CMG MI) to 'A' from 'AA-'. The outlook remains negative. CMG MI is a joint
