Senior Debt Rating of B3 Confirmed, Outlook Revised to Developing

WALNUT CREEK, Calif., June 26 /PRNewswire-FirstCall/ -- The PMI Group, Inc. (NYSE: PMI) (the 'Company') today announced that Moody's Investor Service (Moody's) confirmed the Company's senior debt ratings of B3 and revised the ratings outlook to developing. The Moody's action comes as the Company successfully executed its Amended and Restated Credit Agreement (the 'Amended Agreement'). The Amended Agreement reduces the size of the facility to $125 million and eliminates certain financial covenants and events of default contained in the previous revolving credit facility. Moody's stated in their release 'the confirmation of PMI's senior debt rating reflects the reduction in near term default risk as a result of the amended terms of the bank credit facility.'

Moody's confirmed the following ratings with a developing outlook:

                   Company                                   Rating
    The PMI Group, Inc.
      Senior Unsecured Debt                                     B3
      Junior Subordinated Debt                                Caa1

On February 13, 2009, Moody's assigned the following ratings with a developing outlook:

                   Company                                   Rating
    Insurer Financial Strength
    PMI Mortgage Insurance Co.                                 Ba3
    PMI Insurance Co.                                          Ba3
    PMI Mortgage Insurance Company Limited (PMI                 B1
     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. For more information: www.pmi-us.com.

Cautionary Statement: Statements in this press release that are not historical facts, or that relate to future plans, events or performance are 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that forward-looking statements herein, including our view of the additional flexibility provided by the Amended Agreement, by their nature involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.