S&P rates Genworth

Standard & Poor's said it assigned its A counterparty credit rating to Genworth Financial Inc., its A senior unsecured debt rating to Genworth's $600 million equity unit offering due May 2009, and its BBB+ preferred stock rating to Genworth's $100 million mandatorily redeemable preferred stock issue.

S&P also said that the outlook on Genworth is stable.

These securities are being issued concurrently with the initial public equity offering of Genworth, whereby General Electric Co. is expected to sell about 30% of Genworth and reduce its ownership position further over the next three years as Genworth transitions to become a fully independent company.

"The ratings on Genworth reflect its diversified cash flows from the life and mortgage operating companies, capital structure supportive of the ratings at both the operating and holding companies, and the strong quality of its diversified business profile," said S&P credit analyst Kevin Ahern. "Offsetting these strengths are the inherent risks of becoming a public company and maintaining market leadership and sustainable growth in the competitive markets it which it operates without GE branding and financial support."

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