Moody’s ups Enact, Genworth

Moody’s Investors Service said it upgraded Enact Holdings, Inc.’s long term issuer rating and senior unsecured debt rating to Ba1 from Ba2. The agency also raised Genworth Holdings, Inc.’s backed senior unsecured debt rating to Ba2 from B1.

Enact's upgrade mirrors the company's improved credit profile, including its market position, profitability, capital adequacy and financial flexibility, the agency said. During the first quarter, Enact's market share of the private mortgage insurance market was about 18%, up from 16.6% during 2021.

“Enact reported net income of $546.7 million and a combined ratio of 38% in 2021, and Moody's expects Enact's profitability to remain strong during the second half of 2022 and into 2023 as increasing persistency rates and higher interest rates boost revenues even as mortgage loan origination volumes are expected to trend lower,” the agency said in a press release.

Genworth’s higher rating reflects its improved liquidity position and financial flexibility following the improvement in its debt ladder that includes the expected retirement of its 2024 senior debt in the third quarter of 2022, and the upgrade of Enact's ratings, Moody’s said.

The outlook is stable.

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