The 'AA-' insurer financial strength rating on Australia-based insurer Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia) reflects our opinion of the company's leading position in the Australian lenders' mortgage insurance (LMI) market, solid earnings track record, and very strong capitalization. Genworth Australia has an approximately 50% market share; its closest peer, QBE Lenders' Mortgage Insurance Ltd. (AA-/Stable/--), has approximately 35% (including bank captives). Offsetting rating factors include Genworth Australia's monoline status and vulnerability to changes in economic and property market conditions. Genworth Australia has a subsidiary, Genworth Financial Mortgage Indemnity Ltd., which is in run-off and is rated 'A-' with a stable outlook. We expect Genworth Australia to maintain its leading position in the near-to-medium term as contracts with
