S&P Says QBE, PMI Australia Ratings, Outlooks Unchanged

October 24, 2008

Standard & Poor’s Ratings Services said that its ‘A-‘ rating on Australia’s QBE Insurance Group Ltd. and its ‘A+’ ratings on QBE’s core operating entities remain unchanged following QBE’s announcement that it has completed the acquisition of Australia-based lenders’ mortgage insurer PMI Mortgage Insurance Ltd. (PMI Australia).

S&P added that “given that there is no change in the operational and financial characteristics of the transaction from that originally proposed, the rating outlooks on QBE and its operating companies are stable.”

The rating agency also stated that its ‘AA-‘ rating on PMI Australia “remains unchanged at one notch higher than the rating on QBE’s core operating entities because PMI Australia had satisfied various financial and operational measures that support its ability to be segmented from the ‘A+’ rating.” However, S&P’s rating outlook on PMI Australia is negative.”

S&P indicated that, at “this stage, the acquisition of Hong Kong-based PMI Asia Mortgage Insurance Ltd. (PMI Asia; not rated) is expected to be completed only in November 2008.”

Source: Standard & Poor’s – www.standardandpoors.com

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