We have observed an increase in industry-wide prime mortgage defaults, which has affected higher-quality mortgage insurance books like CMG Mortgage Insurance Co.'s. CMG Mortgage Insurance Co.'s first-quarter of 2009 operating results were below expectations, resulting in changes to our full-year profitability estimates. As a result, we have lowered the ratings on CMG Mortgage Insurance Co. (CMG MI) to 'BBB+' from 'A'. The negative outlook reflects our belief that all mortgage insurers continue to face a very challenging operating environment. On July 29, 2009, Standard&Poor's Ratings Services lowered its counterparty credit and financial strength ratings on CMG Mortgage Insurance Co. (CMG MI) to 'BBB+' from 'A'. The outlook is negative. The ratings on CMG MI are based on its
