Fitch Places Genworth's Life Ratings on Watch Negative

The rating action reflects Fitch's concerns over declining life insurance capital levels and the potential for additional investment impairments in the second half of 2008. In addition, Fitch views the overall organization as under some stress due to issues in the U.S. mortgage insurance operations. Earlier this week, GNW announced that its U.S. mortgage insurance operation is undergoing strategic review.

In its life operations, GNW has successfully executed on certain capital and operational initiatives in the third quarter to return the statutory capital position to within the company's targeted levels by year-end 2008. However, the successful completion of additional initiatives, such as further successful completions of reinsurance agreements currently under negotiation, will be necessary to reach this goal. In Fitch's view, there is measurable execution risk in these initiatives.

A resolution of the watch status on all GNW's ratings is expected within the next several weeks.

The following ratings were placed on Rating Watch Negative:

Genworth Life Insurance Company

Genworth Life Insurance Company of New York

Genworth Life and Annuity Insurance Company

Continental Life Insurance Company of Brentwood, TN

--IFS rated 'AA-'.

Genworth Global Funding

--Secured notes program and all outstanding notes at 'AA-'.

Genworth Financial Inc.

--Commercial paper at 'F1';

--Short-term IDR at 'F1'.

The following ratings remain on Rating Watch Negative where they were placed on June 5, 2008:

Genworth Financial Inc.

--Long-term Issuer Default Rating (IDR) at 'A+';

--Senior notes due May 16, 2009 at 'A';

--Senior notes due June 16, 2009 at 'A';

--Senior Yen notes June 15, 2011 at 'A';

--Senior notes due June 15, 2012 rated 'A';

--Senior notes due June 15, 2014 at 'A';

--Senior notes due Oct. 10, 2015 at 'A'.

--Senior notes due May 22, 2018 at 'A'

--Senior notes due June 15, 2034 at 'A';

--Series A cumulative preferred stock at 'A-';

--Enhanced junior subordinated notes at 'A-';

Genworth Mortgage Insurance Corporation

Genworth Residential Mortgage Insurance Corporation of North Carolina

Genworth Financial Assurance Corporation

Genworth Financial Mortgage Insurance Pty Ltd (Genworth Australia)

Genworth Financial Mortgage Insurance Limited (Genworth UK)

--IFS at 'AA'.

--Genworth Seguros de Credito a la Vivienda, S.A. De C.V.

--IFS at 'A';

The Rating Outlook remains Stable:

Genworth Seguros de Credito a la Vivienda, S.A. De C.V.

--National IFS at 'AAA(mex)'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings Martha M. Butler, CFA, +1-312-368-3191 (Chicago) Cynthia J. Crosson +1-212-908-0863 (New York) Davie Rodriguez, +1-212-908-3086 (New York) Media Relations: Sandro Scenga, +1-212-908-0278 (New York)