Radian Presents Plan to GSEs Ahead of Schedule
28 Avril 2008 - 7:10PM
PR Newswire (US)
PHILADELPHIA, April 28 /PRNewswire-FirstCall/ -- Radian Group Inc.
(NYSE:RDN) ("Radian") today announced that it presented a
comprehensive business and financial plan to the government
sponsored enterprises (GSEs) that is intended to restore
profitability and a AA rating to its mortgage insurance business,
Radian Guaranty Inc. Radian presented this plan to officials from
both GSEs on April 10, 2008, just two days after Standard &
Poor's Rating Services ("S&P") lowered its rating on Radian
Guaranty from AA- to A, triggering the requirement to submit a
remediation plan to the GSEs as a result of S&P's action. "We
have been maintaining a frequent and productive dialog with the
GSEs about the market downturn and its impact on our business since
last year," commented Dave Applegate, president of Radian Guaranty.
"At our respective April 10 meetings with both GSEs we presented
detailed plans on the transformation of Radian Guaranty." Although
neither GSE has publicly commented on Radian's proposed plan, both
GSEs have recently indicated that the information presented on
April 10th meets their requirement for the submission of
information as a result of a downgrade. They will notify Radian
when and if any additional information is required. Radian
anticipates that the process to return to AA status will be a
long-term endeavor and will include regular meetings and progress
reports with both GSEs. Despite the clearly unprecedented market
environment, Radian remains committed to working closely with their
lender partners and the GSEs to provide solutions that will improve
the future of the housing industry. Radian Group Inc. is a global
credit risk management company headquartered in Philadelphia with
significant operations in New York and London. Radian develops
innovative financial solutions by applying its core mortgage credit
risk expertise and structured finance capabilities to the credit
enhancement needs of the capital markets worldwide, primarily
through credit insurance products. The company also provides credit
enhancement for public finance and other corporate and consumer
assets on both a direct and reinsurance basis and holds strategic
interests in credit-based consumer asset businesses. Additional
information may be found at http://www.radian.biz/. All statements
in this news release that address events, developments or results
that we expect or anticipate may occur in the future are "forward-
looking statements" within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934 and the U.S. Private Securities Litigation Reform Act of
1995. These statements are made on the basis of management's
current views and assumptions with respect to future events. Any
forward-looking statement is not a guarantee of future performance
and actual results could differ materially from those contained in
the forward looking information. The information included in this
news release, as well as our prospects as a whole, are subject to
risks and uncertainties, including the following: Our ability to
retain our "Top Tier" eligibility requirement from both Freddie Mac
and Fannie Mae. Freddie Mac's and Fannie Mae's eligibility
requirements for Top Tier mortgage insurers currently require such
insurers to maintain an insurer financial strength rating of AA- or
Aa3 from at least two of the three ratings agencies that
customarily rate them; however, both Freddie Mac and Fannie Mae
have indicated that loss of Top Tier mortgage insurer eligibility
due to such a downgrade will no longer be automatic and will be
subject to review if and when it occurs. Given our recent downgrade
by S&P, we cannot be certain that we will continue to retain
Top Tier eligibility from either Freddie Mac or Fannie Mae. If we
were to lose Top Tier eligibility, Freddie Mac and/or Fannie Mae
could restrict us from conducting certain types of business with
them or take actions that may include not purchasing loans insured
by us, which would have a material adverse impact on the franchise
value of our mortgage insurance business and our future prospects
and could negatively impact our results of operations and financial
condition. For more information regarding certain additional risks
that we face, you should refer to the Risk Factors detailed in Part
I, Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2007. We caution you not to place undue reliance on
these forward-looking statements, which are current only as of the
date of this news release. We do not intend to, and we disclaim any
duty or obligation to, update or revise any forward-looking
statements made in this news release to reflect new information or
future events or for any other reason. Contact: For Investors:
Terri Williams-Perry - phone: 215 231.1486 Email: For the Media:
Rick Gillespie - phone: 215 231.1061 Email: Steve Frankel / Tim
Lynch Joele Frank, Wilkinson Brimmer Katcher 212 355.4449
DATASOURCE: Radian Group Inc. CONTACT: Investors, Terri
Williams-Perry, +1-215-231-1486, , or Media, Rick Gillespie,
+1-215-231-1061, , both of Radian Group Inc.; or Steve Frankel, or
Tim Lynch, both of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, for Radian Group Web site: http://www.radian.biz/
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