Genworth Mortgage Insurance Australia Limited (ASX:GMA) notified the market about the recent change in the Fitch Ratings of its operating subsidiary, Genworth Financial Mortgage Insurance Pty Limited. Its IFS (insurer financial strength) rating has changed from ‘A+’ (Strong) to ‘A’ (Strong). Although the rating outlook is maintained as ‘negative’.
With this, Fitch also stated that the Australian economy is likely to contract in 2020 by 5 per cent and unemployment at 8 per cent (on average) for the year.
GMA has connections with more than 100 lender customers based out of Australia. The Company stated that change in the rating has not impacted its arrangements with its lender customers.
Disclaimer
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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