Moody’s upgrades Radian debt to B1

Moody's Investors Service said it upgraded the rating of Radian Group Inc.'s senior unsecured debt to B1 with a positive outlook.

This action concludes the review for upgrade, and was prompted by the announcement by Radian Group, that it completed its offering of $350 million of 5¼% senior notes due in 2020 and entered into agreements to purchase an aggregate of $389 million principal amount of its convertible senior notes due in 2017.

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 debt issuance is also positive for Radian Guaranty Inc. (insurance financial strength Ba1, positive), the group's lead mortgage insurance subsidiary, the company has not yet implemented its plan to attain compliance with the private mortgage insurer eligibility requirements.

© 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.