S&P revises Genworth MI view to negative

S&P said it revised its outlook on Genworth MI Canada Inc. and Genworth Financial Mortgage Insurance Co. of Canada to negative from stable. The agency also affirmed the BBB+ long-term issuer credit and senior debt ratings on Genworth MI Canada Inc., and the A+ long-term issuer credit and financial strength ratings on Genworth Financial.

“The deterioration in the economy because of the impact of Covid-19 and an increasing trend in unemployment will lead to a higher rate of delinquencies and potential losses for the company,” said S&P in a press release.

“However, there is a high degree of uncertainty about the ultimate level of delinquencies and the cure activity and severity of defaulted loans, especially if there is a deep and protracted recession, which can potentially impact the company’s capitalization,” S&P said.

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