Moody’s downgrades Australia’s mortgage linchpin

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Via Moody’s:

Moody’s Investors Service has downgraded to Baa1 from A3 the insurance financial strength rating (IFSR) of Genworth Financial Mortgage Insurance Pty Limited (Genworth Australia).

Today’s rating action on Genworth Australia concludes the review initiated on 19 June 2017, which was part of a wider rating action on Australian financial institutions to reflect Moody’s view that risks in the Australian housing market have risen, heightening the financial sector’s sensitivity to adverse shocks

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.