Moody's may downgrade Genworth

Moody's Investors Service said it placed Genworth Financial, Inc.'s Baa1 senior debt rating, Baa2 junior subordinated debt rating and Baa3 preferred stock on review for possible downgrade.

The review follows Genworth's announcement of its fourth-quarter results, including a net loss of $321 million, which included $149 million of realized capital losses and $238 million of goodwill write-down.

The agency said the review reflects the continued uncertainty with the mortgage insurance operations as well as the impact of the stressed credit market and economic conditions on Genworth's life insurance operations. Moody's added that while it does not anticipate that Genworth would take resources from its life companies to support its mortgage insurance operations, the weakened mortgage insurance company could place pressure on the overall organization's financial flexibility.

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