US group Genworth Financial has reduced its shareholding in Genworth Mortgage Insurance Australia from 66% to 52%.

In response, Standard & Poor’s (S&P) has affirmed its A+ rating on Genworth Australia and revised the outlook to stable from developing.

“In particular, we do not expect any sell-down to cause material deterioration in the competitive position and/or capital position of Genworth’s Australian operations,” the ratings agency said.

The sell-down increases Genworth’s insulation from the US operations, which face further uncertainty, according to S&P.

Genworth estimates it has 44% of the Australian lenders’ mortgage insurance market.

In February Westpac gave Genworth 90 days’ notice to terminate its contract, which provided 14% of gross written premium last year.