We have affirmed our rating on Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia). The downgrade of the rating on Genworth Australia's partial reinsurer, Genworth Mortgage Insurance Corp. (GMIC) on Dec. 22, 2009, is tolerated under Genworth Australia's existing rating. Genworth Australia is expected to further reduce its reliance on GMIC for reinsurance. On Dec. 23, 2009, Standard&Poor's Ratings Services affirmed its 'AA-' 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 downgrade of the rating on Genworth Australia's partial reinsurer, Genworth Mortgage Insurance Corp. (GMIC) to BBB-/Negative/— from BBB+/Watch Neg/— on Dec. 22, 2009, is tolerated under Genworth
