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Genworth Mortgage AA Rating Still Firm, Analyst Says

Genworth Financial Mortgage Insurance Corp . has enough capital to maintain its "AA" credit rating, opines Deutsche Bank financial analyst Darin Arita . And even if a downgrade did take place, the Richmond-based insurance company still would be on a par with its mortgage-insurance competitors.

"Genworth's mortgage insurance competitors have already been downgraded to single A, so a downgrade would not put Genworth at a disadvantage," Arita wrote in a research note to clients, as reported by the Associated Press .

In June, Fitch Ratings placed the "AA" insurer financial strength rating of Genworth Mortgage Insurance Corp. and its affiliates on watch for possible downgrade. The stock of parent company Genworth Financial has taken a beating over concerns about the mortgage insurance business' vulnerabilities.

In a Thursday management call with analysts, Genworth executives said they are considering considering reinsurance transactions, asset transfers from outside the U.S. and joint ventures to boost its capital.