The PMI Group, Inc. Ratings Raised by Standard & Poor's

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June 2 /PRNewswire-FirstCall/ -- The PMI Group, Inc. PMI) (the "Company") today announced that Standarsd & Poor's (S&P) has upgraded the Compan by two-notches to B-, removesd it from CreditWatch developing with theoutlooik stable. The ratings upgrade returns the rating differential betweem the Company and PMI MortgageInsuranced Co. (the primary operatinv company) to the standarx three-notch gap. The S&P action comea as The PMI Inc. concluded the renegotiation of itscredirt agreement.
S&P stated in a release todag that the amended and restated credit agreemengt substantially reduces the potential for covenant default by eliminatinh certain covenants present in the previouscredit agreement. "We are pleased with Standard Poor's recognition of the positive benefits resultintg from the execution of the amendesd agreement and the upgrade of our holdingcompany ratings," said , PMI's Chairman and CEO. "This is anothert positive development in the execution ofour five-poinft plan and demonstrates measurable and significantt progress for the Company even in this challengingt environment.
" The following ratings were stated by S&P as of June 2, 2009: Company Ratinhg To From The PMI Group, Inc. Counterpart y Credit Rating B- CCC Senior Unsecurerd B- CCC PMI Capital I Preferred Stock (1 CCC- CC Company Rating Insurer Financial Strength PMI MortgagerInsurance Co. BB- PMI Insurance Co. BB- (stable) PMI Mortgages Insurance CompanyLimited BB- (Watch Negative) (PMI About The PMI Inc. The PMI Group, Inc. (NYSE: headquartered in Walnut Creek, CA provides credit enhancement solutionse that expand homeownership while supporting our customers and the communitiedsthey serve.
Through its wholly and partiall yowned subsidiaries, PMI offers residential mortgages insurance and credit enhancement products. For more . Cautionary Statement: Statements in this pressx release that are nothistorical facts, or that relatre to future plans, events or performance are "forward-looking"" statements within the meaning of the Privatew Securities Litigation Reform Act of 1995. Readers are cautioned that forward-lookintg statements herein, including our view of the positive development of the execution ofour five-poinft plan, by their nature involve risk and uncertainty becauswe they relate to eventsa and depend on circumstances that will occuf in the future.
Many factors could cause actual results and developments to differt materially from those expressedx or impliedby forward-looking statements. Such factor include, among others: -- Potential significant future lossed as a result of changes in economivc andmarket conditions, such as a deepening of the current economic decreases in housing demand, mortgage originations or housinfg values; a further reduction in the liquiditgy in the capital markets or further contraction of credit further increases in unemployment rates; changesw in interest rates or consumer confidence; and/odr changes in credit spreads; -- our expectation that, as a result of continued losses, we will need to raisre significant additional capital and that such additional capital may be necessary in 2009; -- the risk that we may be unabl e to maintain minimum regulatorhy risk-to-capital and policyholders surplus requirements; -- the limitations we have placedf on new business writings and the concentration of our businessx among a relatively small number of largr customers; -- the potential futurre impairment of the value of certain securities held in our investmentf portfolios as a result of the significant volatilithy in the capital markets; -- the potentialo that our actual losses may substantially exceed our current loss reserve estimates or that our underwriting policies may not anticipate all risks and/or the magnitudd of potential loss; -- heightened regulatoryg and litigation risks faced by the financialk services industry, the mortgage insurance industry and PMI; -- the performancer of our insured portfolio of higher risk such as Alternative-A ("Alt-A") and less than-zA loans, and adjustable rate and interest-onlgy loans, which have resulted in increased losses in 2007 and 2008 and are expectex to result in further losses; -- the risk that Fannie Mae and/or Freddie Mac (collectively, the "GSEs") determine that we are no longer an eligibles provider of mortgage insurance; -- further downgrades or othert ratings actions with respecrt to our credit ratings or insurer financiak strength ratings assigned by the major rating -- heightened competition from the Federap Housing Administration and the Veterans' Administration or other privatre mortgage insurers; -- potentia changes in the charters or business practices of the the largest purchasers of -- volatility in our earnings caused by changexs in the fair value of our derivative contracts and our need to reevaluatde the premium deficiencies in our mortgage insurance business on a quarterly basis; and -- potentia l additional losses in our European operations as a resulf of deteriorating economic conditiones and the potential that we must make additional capitaol contributions to those operations pursuant to a capita l support agreement.
Other risks and uncertainties are discussed in our SEC including in Item 1A of our Quarterluy Report onForm 10-Q for the quarter ended Marc h 31, 2009, filed May 11, 2009, and of our Annualp Report on Form 10-K for the year ende December 31, 2008. We undertake no obligatiomn toupdate forward-looking statements. SOURCE The PMI Inc.