Dominion Bond Rating Service has assigned a financial strength rating of AA to Genworth Financial Mortgage Insurance Co. Canada.

The rating primarily reflects the company’s capital strength relative to the risk embedded in its mortgage insurance portfolio, as assessed by DBRS under a severe stress loss scenario. The rating agency says that Genworth’s rating is also supported by the company’s business strategy, which is built around delivering product innovation and superior customer service.

“In recent years, company profitability has been excellent, reflecting buoyant Canadian housing markets that have kept mortgage delinquency rates below historic averages,” DBRS says. It notes that its, “strong capitalization, experienced management, prudent underwriting disciplines, and strong risk management culture position the company to deal successfully with a possible downturn in the housing market”.