Standard & Poor’s (S&P) has downgraded its group credit profile for Genworth Financial from bbb- to bb, but the Australian mortgage insurance operations remain unaffected.

The ratings agency says the downgrade follows the US life division’s decision to suspend traditional life and annuity sales, as well as reduce statutory earnings and surplus projections to achieve a prospective business profile that is less diversified.

“We view the credit quality of the Australian and Canadian mortgage insurance entities as relatively insulated at the respective current rating levels, given local regulatory oversight, external minority ownership and restriction on capital fungibility,” S&P says.