The 'AA-' insurer financial strength rating on Australia-based insurer Genworth Financial Mortgage Insurance Pty Ltd. (GFMI) reflects the company's leading market position, very strong capitalization, and solid earnings track record. Offsetting these factors are the company's concentrated suite of lenders' mortgage insurance (LMI) products, which rely on home loan market performance and prevailing economic conditions, and its limited financial flexibility given Genworth group's recent deterioration in creditworthiness. The rating on GFMI's wholly owned 'runoff' subsidiary, Genworth Financial Mortgage Indemnity Ltd., is 'A-' with a stable outlook. The rating on GFMI can be maintained two notches higher than that on Genworth Life companies (A/Stable), which are considered the main operating entities of the U.S-based Genworth group. GFMI's rating can also be
