Radian Debt Ratings Downgraded

Meanwhile, the debt ratings of another mortgage insurer, Philadelphia-based Radian Group, have also been downgraded, from A-plus to A, by Fitch Ratings.The outlook on the debt ratings has been changed from Negative to Stable. The insurer financial strength ratings of Radian's subsidiaries, Radian Guaranty, Radian Insurance, and Amerin Guaranty Corp., remain at AA, Fitch said. The rating agency attributed the downgrades to "an expansion of the notching between the organization's IFS rating and long-term issuer rating, and primarily reflects Fitch's concern with the company's higher utilization of debt leverage relative to that employed over its recent history." As of June 30, the company's ratio of debt to total capital was 19.2%, up from 12% at the end of 2001, Fitch said.