Moody's upgrades MGIC

Moody's Investors Service said it upgraded to B3 from Caa1 the senior unsecured debt ratings of MGIC Investment Corp., the holding company for Mortgage Guaranty Insurance Corp. and MGIC Indemnity Corp.

The outlook is positive. This concludes the review that began on April 21.

The upgrade reflects MGIC's substantially enhanced liquidity position following its $1.1 billion recent capital raise and capital contribution, according to the agency.

Moody's said that the upgrade of MGIC Investment Corp.'s $390 million convertible junior sub debt to Caa3 reflects reduced likelihood of loss in light of the holding company's strong liquidity position.

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