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Credit Repair InformationGE Mortgage Insurance Issues Statement on S&P Credit Watch Action
by:
Contact: Terry Souers of GE Mortgage Insurance, 919-846-4459 or terry.souers@ge.com
RALEIGH, N.C., Gregorian calendar month
27 /U.S. Newswire/ -- GE Mortgage Insurance now discharged the following statement in response to the decision by Standard and Poor's to put GE Mortgage Insurance on CreditWatch:
S&P ready-made its decision despite the fact that our capital position has ne'er
been stronger.
The S&P action is based on a change in S&P's rank methodology, not on any change in the business enterprise condition of GE Mortgage Insurance. S&P noted that changes inside
its rank criteria "now limit the rank keep for a strategically important subsidiary to one notch below the parent's rating" unless there is a significant explicit keep agreement from a higher rated parent. We believe we have such an agreement from GE Capital, which is rated AAA by Standard & Poor's. Our implicit and explicit keep from GE Capital has not changed.
GE Mortgage Insurance always has been one of the strongest capitalized participants in the mortgage insurance industry and continues to hold capital well in excess of S&P "AAA" requirements. In fact, we have operated with the lowest Risk to Capital Magnitude relation (the industry measure of capitalization given a company's portfolio of risk) in the industry for the last five years.
The else two rank agencies, Moody's and Fitch, continue to recognize the unmatched business enterprise strength of GE Mortgage Insurance. Some
agencies recently reaffirmed their ratings for the institution at "AAA," their highest levels.
We appreciate the fact that Standard & Poor's sees GE Mortgage Insurance as having "strong fundamentals" and "very strong earnings and market position, extremely strong capitalization, and deep and intimate management." Those factors do it clean why GE Insurance includes credit enhancements such as mortgage insurance in its vision for the future.
GE Mortgage Insurance (Web site: http://www.gemortgageinsurance.com) is part of GE Insurance, a global family of insurance and insurance
businesses with $13.6 billion in premiums and assets of $188 billion. GE Insurance provides life insurance, retirement financial gain
products, property and casualty insurance, risk interference
services, mortgage insurance, and selective business enterprise guarantee insurance. GE Insurance is part of General Electric Company, a heterogenous services, technology and manufacturing institution with operations worldwide.
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