Genworth Bonds at Risk of Cut to Junk as Moody’s Reviews Rating
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Genworth Financial Inc. bonds are at risk of losing their investment-grade rating at Moody’s Investors Service, which placed the insurer’s main unit on review for a downgrade after a record loss.
The Genworth Holdings Inc. unit, which includes the life and long-term care operations, faces the review of its Baa3 grade because “we believe the company remains exposed to further, significant deterioration in its legacy block of business,” the ratings firm said today in a statement on the Richmond, Virginia-based insurer. The Baa3 score is the lowest of 10 investment-grade levels.