CMG Mortgage Insurance IFR affirmed at AA with stable outlook

MUMBAI, Oct. 31, 2007 (Thomson Financial delivered by Newstex) — Fitch Ratings said it has affirmed CMG Mortgage Insurance Co’s (CMG MI)insurer financial strength at ‘AA’ with a stable outlook reflecting the company’s solid niche position within the credit union market, strong underwriting earnings and high-quality balance sheet.

The ratings also reflects the explicit financial support for CMG from its parent companies and the lower risk of its insured loan portfolio relative to other mortgage insurers, Fitch said. Given the current negative outlook on the mortgage insurance industry, the ratings agency said it will be closely monitoring delinquency and loss development trends to ensure that capital adequacy and financial flexibility remain commensurate with present rating levels, the ratings agency said.

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