Rating Agency Downgrades Debt Status of Two Mortgage Insurers.

Fitch Ratings here has downgraded the debt ratings on two publicly traded private mortgage insurers - MGIC Investment Corp., Milwaukee, and The Radian Group, Philadelphia.

Fitch did not take any action on either company's insurer financial strength rating.

The reasoning behind each move was similar - a concern over leverage at both firms.

Fitch's statement on the MGIC decision said the downgrade "is the result of an expansion of the notching between the organization's IFS rating and debt ratings and primarily reflects Fitch's concern with the company's more aggressive management of its financial leverage."

MGIC's debt to adjusted total capital ratio was 14.9% as of June 30, 2003, up from 13.7% at the end of 2001. Fitch notes the increase is because of higher levels of debt outstanding as well as a "meaningful" stock repurchase program undertaken by MGIC.

At Radian, Fitch is concerned with "the company's higher utilization of debt leverage relative to that employed over its recent history." The debt to total capital ratio was 19.2% as of June 30, 2003, up from 16.5% at year-end 2002, 12% in 2001 and zero from 1998 through 2000.

Separately, Standard & Poor's Ratings Services here has issued an "A+" senior unsecured debt rating, an "A" senior subordinated debt rating and an "A-" preferred stock rating to The PMI Group Inc.'s $700 million universal shelf offering registration.