S&P rates Radian notes B-

Standard & Poor's said it affirmed all of the ratings on Radian Group Inc. and its operating subsidiaries.

The agency also said it assigned a B- senior unsecured debt rating to the company's proposed $300 million senior notes.

The outlook is positive.

Radian has announced a plan to issue 15.5 million shares of common equity and $300 million of senior notes due in 2019.

It will use the combined offering to refinance an existing maturity of $55 million due in 2015, as well as to fund the $305 million purchase of Clayton Holdings LLC for an enterprise value of $305 million, S&P said.

The acquisition is expected to be completed this summer and accretive to earnings soon thereafter, adding positive free cash flow to the holding company by year-end 2014, the agency said.

This transaction is viewed as credit neutral, but in the longer term it will add scale to Radian's loan servicing, due diligence and risk-management capabilities, S&P said.

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