Moody's could cut Genworth

Moody's Investors Service said it placed the insurance financial strength ratings of Genworth Financial Mortgage Insurance Pty Ltd. (Genworth Australia) and Genworth Financial Mortgage Indemnity Ltd. (Genworth Indemnity) on review for possible downgrade.

"The rating review of Genworth's Australian mortgage insurance operations reflects Moody's concerns regarding the higher-than-anticipated losses reported in quarter one 2012," Moody's senior credit officer Ilya Serov said in a news release.

"The company's performance during this period was adversely affected by developments in the coastal Queensland housing markets, underlining the vulnerabilities of its business model to a downturn in a regional area or in the broader Australian housing market," Serov added in the release.

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