ARGUS Downgrades Genworth Financial (GNW) to Hold

January 6, 2009 1:06 PM EST

ARGUS downgrades Genworth Financial Inc. (NYSE: GNW) from Buy to Hold.

ARGUS analyst says, "We are lowering our rating on Genworth Financial to HOLD on concerns that the global recession will continue to hurt operating results in the domestic and international mortgage operations as well as in payment protection. We recognize that the company's other operating units have value and will produce a favorable stream of operating profits, but as we try to divine the economic outlook for 2009 with respect to Genworth's businesses and capital position, we believe that the company may have a rough time this year even in the event of a capital injection by the government. Moreover, there appears to be little market interest in Genworth's properties, as there have been no major asset sales to date. This suggests that the sale of certain operating units (or even of the company as a whole) will take time and may not occur at all."

Genworth Financial, Inc. (Genworth) is a financial security company dedicated to providing insurance, investment and financial solutions that help meet the homeownership, life security, wealth management and retirement security needs of more than 15 million customers, with a presence in more than 25 countries.

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