Fitch drops Genworth insurer ratings

Fitch Ratings said it has downgraded the insurer financial strength ratings of Genworth Financial Inc.'s primary life insurance companies to A- from A+.

The outlook is negative.

The rating action reflects Fitch's updated view of the life companies' statutory capitalization, investment exposure, and liquidity and financial flexibility, which have recently improved but may be negatively impacted by further deterioration in the financial markets.

The life companies' investment performance deteriorated significantly in 2008 due to losses in structured assets, including subprime, Alt-A and prime residential-mortgage-backed securities and asset-backed securities, as well as corporate bonds, including bonds and preferred stock in the financial sector, Fitch added.

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