Moody’s could lift Radian

Moody's Investors Service said it placed the B2 senior unsecured debt rating of Radian Group Inc. on review for upgrade.

The agency also affirmed the Ba1 insurance financial strength ratings of Radian Guaranty Inc. and Radian Mortgage Assurance Inc., with positive outlooks.

The action was prompted by Radian Group’s announcement that it plans to issue $300 million in senior unsecured debt, maturing in 2020, the proceeds of which to be used primarily for the repurchase of some of its outstanding 2017 convertible notes.

Moody's said the debt issuance is credit positive for Radian Group because it meaningfully improves the holding company's debt maturity profile and better aligns it with the expected timing of dividend capacity from its subsidiaries.

The agency added that while the planned debt issuance is also positive for Radian Guaranty, the company has not yet finalized or implemented its plans to attain compliance with the private mortgage insurer eligibility requirements.

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