In a move that parallels its one-notch ratings downgrade of most of Australia's largest home loan providers in the banking sector, Moody's has downgraded the insurance financial strength rating of Westpac Lenders Mortgage Insurance Limited and placed the A3 insurance financial strength rating of Genworth Financial Mortgage Insurance Pty Ltd on review for downgrade. This review of Genworth's insurance financial strength rating due to similar elevated risks in the household sector and the consequential increased sensitivity to potential shocks that are behind the bank downgrades. "As a mortgage insurer, there is potential for higher losses emanating from residential mortgage loans with higher loan-to-value ratios," Moody's stated. Moody's said its review would focus on the company's portfolio loss development and potential for deterioration due to the elevated risks in the household sector, its capital adequacy in light of these risks, and the sustainability of its business franchise, given the change in lender behaviour toward the retention of a greater level of risk on their own balance sheets, as well as competition from foreign-based firms. Moody's said its downgrade of the insurance financial strength rating of Westpac Lenders Mortgage Insurance Limited to A1 from Aa3 and the revision of WLMI's outlook to stable from negative incorporates the agency's assumption of affiliate support from Westpac. The rating action reflects the change in the rating and outlook of its parent company.