Counterparty Credit Rating Raised to B-, Outlook Stable
WALNUT CREEK, Calif., June 2 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) (the 'Company') today announced that Standard & Poor's (S&P) has upgraded the Company by two-notches to B-, removed it from CreditWatch developing with the outlook stable. The ratings upgrade returns the rating differential between the Company and PMI Mortgage Insurance Co. (the primary operating company) to the standard three-notch gap. The S&P action comes as The PMI Group, Inc. concluded the renegotiation of its credit agreement. S&P stated in a release today that the amended and restated credit agreement substantially reduces the potential for covenant default by eliminating certain covenants present in the previous credit agreement.
'We are pleased with Standard & Poor's recognition of the positive benefits resulting from the execution of the amended agreement and the upgrade of our holding company ratings,' said Steve Smith, PMI's Chairman and CEO. 'This is another positive development in the execution of our five-point plan and demonstrates measurable and significant progress for the Company even in this challenging environment.'
The following ratings were stated by S&P as of June 2, 2009:
Company Rating
To From
The PMI Group, Inc.
Counterparty Credit Rating B- CCC
Senior Unsecured B- CCC
PMI Capital I
Preferred Stock (1 issue) CCC- CC
The following ratings remain unchanged by the S&P ratings action:
Company Rating
Insurer Financial Strength
PMI Mortgage Insurance Co. BB- (stable)
PMI Insurance Co. BB- (stable)
PMI Mortgage Insurance Company Limited BB- (Watch Negative)
(PMI Europe)
About The PMI Group, Inc.
The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products.
