Earlier Thursday, Fitch cut the insurer financial strength rating of PMI Group's U.S. mortgage insurance subsidiary to "A+" from "AA." Both are still considered investment grade.
PMI Group said its operations would be unaffected by the downgrade because it still remains eligible to insure mortgages for both Fannie Mae and Freddie Mac, the nation's largest mortgage purchasers. The pair of government-sponsored enterprises require mortgage insurers to submit a remediation plan if their ratings fall below "AA-" that demonstrates how they will return to profitability. PMI Group said it already submitted a remediation plan.
PMI Group also said it has enough capital resources to pay insurance claims on defaulted loans.