RDN Radian Group Inc

Radian Financial Guaranty Subsidiaries Assigned Aa3 Ratings with Stable Outlook from Moody's Company to be Created By Planned Merger Will Maintain Aa3 Rating PHILADELPHIA, May 25 /PRNewswire-FirstCall/ -- Radian Group Inc.'s financial guaranty subsidiaries, Radian Asset Assurance Inc. and Radian Reinsurance Inc., have been assigned Aa3 financial strength ratings, both with a stable outlook, by Moody's Investors Service. This marks the first time Moody's has rated Radian Asset Assurance and represents a downgrade in Radian Reinsurance's previous Aa2 rating, which was placed on review on December 22, 2003. The Aa3 rating will also apply to the combined company to be created through the merger of Radian Reinsurance into Radian Asset Assurance, which is anticipated on or around June 1, 2004. The new company, which will assume the Radian Asset Assurance name, will have more than $1.0 billion in statutory capital and more than $2.5 billion in claims-paying resources on an estimated proforma basis. Its insured portfolio of more than $60 billion will be stronger and more diversified than either of the individual companies, allowing for increased capital flexibility and higher regulatory and rating agency single-risk exposure limits. "We are confident in the strength of our financial guaranty business and its opportunities for growth," stated Radian Chairman and Chief Executive Officer Frank P. Filipps. "We remain committed to our clients and to providing the capacity and capital strength they need. We fully intend to continue executing our established strategy and business plan." In its report, Moody's noted that the ratings reflect Radian's "strong combined risk-adjusted capital base, the meaningful revenue streams from the existing primary and reinsurance book of business, and [Radian's] conservative operating and risk management culture." Radian Asset Assurance and Radian Reinsurance President Tino Kamarck added, "Radian continues to build demand for its structured products expertise and is gaining traction quickly in this growing and vibrant market. Although we entered this business less than three years ago, we have established a strong franchise with a significant pipeline. We remain confident that we will continue to demonstrate the viability and success of our Aa financial guaranty business model." Radian Group Inc. is a leading credit enhancement provider to the global financial and capital markets, headquartered in Philadelphia. Radian's subsidiaries provide products and services through three business lines: financial guaranty, mortgage insurance and other financial services. Additional information may be found at http://www.radiangroupinc.com/. DATASOURCE: Radian Group Inc. CONTACT: For investors: Mona Zeehandelaar, +1-215-231-1674, email: ; or for the media: Emily Riley, +1-215-231-1328, email: , both of Radian Group Web site: http://www.radiangroupinc.com/

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