Rating Recap: PIC (PMI)

September 4, 2007

Standard & Poor’s Ratings Services said today that it assigned its ‘AA’ financial strength rating to PMI Insurance Co. (PIC) with a stable outlook. “PIC is incorporated in the state of Arizona and is a wholly owned subsidiary of PMI Group Inc.” PMI is the holding company for several mortgage insurers, including PMI Mortgage Insurance Co. (PMI MIC; AA/Stable/–). S&P indicated that the “rating is based in part on a guarantee provided by PMI MIC, which guarantees the policyholder obligations of future business produced by PIC. The guarantee does not cover PIC’s existing policyholder obligations (the runoff portfolio). The rating also reflects PIC’s strategic importance to PMI, good competitive position, access to PMI MIC’s expertise and resources, good operating performance, and extremely strong initial capitalization.

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