Ominous sign for mortgage insurer for NZ mortgages

Moody's has warned it may downgrade the credit rating for PMI Mortgage Insurance, which provides a good chunk of the mortgage insurance for 80% mortgages in New Zealand. "The Aa3 insurance financial strength rating of PMI Mortgage Insurance Ltd, the Australian mortgage insurer, remains under review for further downgrade pending the closing of the announced acquisition of PMI Australia and PMI Asia by QBE Insurance Group Ltd," Moody's said. Any difficulties with PMI's credit rating is likely to further discourage New Zealand banks from lending more than 80% of the value of a property.