S&P Global Ratings has downgraded its outlook for Westpac Lenders’ Mortgage Insurance to negative from stable following similar action on the parent banking group.

At the same time, S&P affirmed its AA- financial strength and issuer credit ratings.

“The ratings on Westpac Lenders’ Mortgage Insurance reflect its position as the captive lenders’ mortgage insurance provider for Westpac and our expectation that the entity will benefit from extraordinary support from the group, if required,” the ratings company says.

S&P this month downgraded the outlook for Australia’s big four banks and Macquarie, mirroring action also taken on the Commonwealth of Australia.