Moody’s reviews Radian

Moody's Investors Service said it placed the Ba2 insurance financial strength ratings of Radian Guaranty Inc. and Radian Mortgage Assurance Inc., as well as the Ba1 insurance financial strength rating of Radian Asset Assurance Inc., on review for upgrade.

In the same action, the agency placed the B3 senior unsecured debt ratings of Radian Group Inc. on review for upgrade

The rating action also has implications for the various transactions wrapped by Radian Asset as discussed later in this press release.

Moody’s said the action was prompted by the announcement by Radian Guaranty, a direct subsidiary of Radian Group, that it entered into a stock purchase agreement to sell 100% of the issued and outstanding shares of Radian Asset, its financial guaranty insurance subsidiary, to Assured Guaranty Corp. (A3 IFS, negative), a subsidiary of Assured Guaranty Ltd. (senior debt at Baa2, stable) for a purchase price of about $810 million.

The purchase price is payable in cash consideration on the closing date, which is expected to occur in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory approvals. Assured Guaranty stated that it intends to merge Radian Asset into Assured Guaranty Corp. immediately following the acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.