S&P ups Radian Group

Standard & Poor's said it raised its local-currency counterparty credit and senior unsecured debt ratings on Radian Group Inc. to CCC+ from CCC.

The outlook is negative.

The agency said it believes Radian will use the proceeds of its recent issuance of $550 million in common stock to fund working capital requirements and for general corporate purposes, including capital support for the mortgage insurance operating subsidiaries.

The agency said it understands that management intends to hold the funds at the holding company to maximize its flexibility in using them.

Liquidity at the holding company has improved in the past two quarters as resources relative to needs have improved, S&P said. The holding company said it believes it has sufficient liquidity to meet its obligations into 2012, the agency said.

Because of ongoing economic uncertainty and the ultimate losses that may be realized, the local-currency financial strength ratings for the mortgage insurance operating companies - Radian Guaranty Inc., Radian Insurance Inc., Radian Mortgage Insurance Inc. and Amerin Guaranty Corp. - remain unchanged at B+, S&P said.

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