S&P Downgrades MGIC, Subs

In addition to downgrading Triad (see item above), Standard & Poor's also downgraded the ratings of Milwaukee-based MGIC Investment Corp. and three of its subsidiaries (including its Australian business) by one notch.S&P credit analyst James Brender said the rating agency believes that MGIC's near-term results will compare "somewhat unfavorably with those of its peers because of MGIC's higher risk tolerance, particularly for borrowers with low credit scores." S&P projects that MGIC will have underwriting losses for this year plus the next two, but should have underwriting profits by 2010. In other actions, S&P affirmed the ratings of Radian Group, Philadelphia; The PMI Group, Walnut Creek, Calif.; and Old Republic International Corp., the Chicago-based parent of a mortgage insurer and a title insurer. While MGIC and Triad have a stable ratings outlook, S&P said Radian, PMI, and Old Republic have negative outlooks. The rating agency can be found online at http://www.standardandpoors.com.