Fitch cuts Radian

Fitch Ratings said it downgraded the long-term debt ratings of the Radian Group Inc. to A- from A. Fitch said it also lowered the company's $250 million 7.75% debentures due June 1, 2011, the $250 million 5.625% senior notes due Feb. 15, 2013 and $250 million 5.375% senior notes due Feb. 15, 2015 to A- from A.

The outlook for Radian and its mortgage insurance subsidiaries is now negative.

The downgrade follows the joint announcement by Radian and MGIC Investment Corp. that they mutually agreed to terminate their pending merger agreement.

The agency said it viewed Radian and its mortgage insurance subsidiaries' financial position on a standalone basis to be weakened by recent market developments.

While the current market conditions in the mortgage insurance sector remain challenged, Fitch said it believes Radian's mortgage insurance subsidiaries currently maintain ample capital resources to support its book of business at an AA- rating level.

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