The S&P action is based on a change in S&P's rating methodology, not
on any change in the financial condition of GE Mortgage Insurance.
S&P noted that changes within its rating criteria "now limit the
rating support for a strategically important subsidiary to one notch
below the parent's rating" unless there is a significant explicit
support agreement from a higher rated parent. We believe we have
such an agreement from GE Capital, which is rated AAA by Standard &
Poor's. Our implicit and explicit support from GE Capital has not
changed.
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