Moody’s rates Radian notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to $400 million of senior notes to be issued by Radian Group Inc. (senior unsecured Ba3, positive).

Net proceeds are expected to be used to pay a portion of the consideration in connection with an outstanding tender offer on Radian's existing senior notes due in 2019, 2020 and 2021, as well as for general corporate purposes, which may include the redemption of senior notes that are not tendered and accepted for purchase in the tender offer.

The notes mature in 2024 and are redeemable at the option of the issuer.

The outlook is positive.

Moody's said the Ba3 senior unsecured debt rating and positive outlook reflect the firm's improving overall credit profile as pre-crisis legacy exposures at flagship mortgage insurance operating subsidiary Radian Guaranty Inc. (IFS rating Baa3, positive) amortize and are replaced by high-quality new mortgage insurance business.

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