On April 9, 2009, Standard&Poor's Ratings Services affirmed its 'AA-/Stable/--' counterparty credit and financial strength ratings on Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia). The outlook remains stable. The affirmation reflects Standard&Poor's view that the recent downgrade of Genworth Australia's partial reinsurer, U.S.-based Genworth Mortgage Insurance Corp. (GMIC) to 'BBB+/Stable' from 'A+/Watch Neg./--' on April 8, 2009 is tolerated under Genworth Australia's existing rating. In our press release of February 27, 2009, we foreshadowed that the rating on Genworth Australia could be rated up to four notches higher than GMIC. With the recent downgrade of GMIC, Genworth Australia has now reached the four-notch differential and there is reduced tolerance for any further deterioration in the
