Moody's may cut PMI Mortgage

Moody's Investors Service said it will continue to review for possible downgrade the Aa3 insurance financial strength rating of PMI Mortgage Insurance Ltd.

The continuation of the review follows news that QBE Insurance Group Ltd. will acquire subsidiaries PMI Australia and PMI Asia for about A$1 billion.

Moody's said it views the acquisition of PMI Australia as a credit positive for the company as QBE, in its role as the new owner, will be better positioned to provide financial support, if needed.

However, as PMI Australia is still in the process of diversifying its transitional reinsurance coverage, the rating will remain under review for possible downgrade, the agency said.

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