Research Update: Genworth Financial And Enact Holdings Ratings Raised By One Notch On Improved Credit Profile; Outlook Is Stable

Reduced overhang of financial difficulties at the parent company, Genworth Financial Inc., improved its operating subsidiary, Enact Mortgage Insurance Corp.'s market access and enabled it to compete effectively in the U.S. mortgage insurance (MI) market. We upgraded Enact Holdings Inc. and its operating subsidiary Enact Mortgage Insurance Corp. (collectively, Enact) by one notch. We believe the improvement in Enact's SACP propels Genworth's group credit profile, because the latter is almost entirely driven by its U.S. MI operations. Thus, we also upgraded Genworth by one notch. The outlook on both Genworth and Enact are stable. The stable outlook on Enact reflects our expectations that the company will continue to maintain underwriting discipline and sustain capital adequacy well redundant at the 'BBB'

...- Reduced overhang of financial difficulties at the parent company, Genworth Financial Inc., improved its operating subsidiary, Enact Mortgage Insurance Corp.'s market access and enabled it to compete effectively in the U.S. mortgage insurance (MI) market. - We upgraded Enact Holdings Inc. and its operating subsidiary Enact Mortgage Insurance Corp. (collectively, Enact) by one notch. - We believe the improvement in Enact's SACP propels Genworth's group credit profile, because the latter is almost entirely driven by its U.S. MI operations. - Thus, we also upgraded Genworth by one notch. The outlook on both Genworth and Enact are stable. - The stable outlook on Enact reflects our expectations that the company will continue to maintain underwriting discipline and sustain capital adequacy well redundant at the '###' confidence level. Similarly, for Genworth, we expect sustained underwriting performance and its risk profile to not change materially....

Research Update