Radian Group announced that it presented a comprehensive business and financial plan to the GSEs earlier this month, as a result of its drop in ratings to single-A.
The plan aims to restore profitability and a double-A rating to its mortgage insurance business, Radian Guaranty, the parent company said. The plan was unveiled to the GSEs on April 10, which is two days after Standard & Poors slashed the companys rating to A from AA-. Radian said that while returning to AA might be a long-term endeavor, the company will meet regularly with the GSEs to discuss its progress.
Earlier this month, Radian also announced that it received a waiver from its credit facility lenders to suspend the ratings covenant in the debt package. While the company said it was not in default, it requested temporary relief in order to amend the credit agreement. The changes must be made by April 30.
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