MGIC Debt Ratings Downgraded

The debt ratings of MGIC Investment Corp., Milwaukee, have been downgraded from AA-minus to A-plus by Fitch Ratings.The outlook on the debt ratings has been changed from Negative to Stable. The insurer financial strength rating of MGIC's subsidiary, Mortgage Guaranty Insurance Corp., remains at AA-plus, Fitch said. The rating agency attributed the downgrades to "an expansion of the notching between the organization's IFS rating and debt ratings, and primarily reflects Fitch's concern with the company's more aggressive management of its financial leverage." As of June 30, the company's ratio of debt to adjusted total capital was 14.9%, up from 13.7% at the end of 2001, Fitch said. The increase stems from higher levels of debt outstanding and a stock repurchase program, the rating agency said. Fitch can be found online at http://www.fitchratings.com.