QBE and PMI ratings affirmed 18 August 2008 4:44PM Philip Bayley Standard & Poor's, Moody's Investors Service and Fitch Ratings responded quickly to QBE Insurance's move on PMI Mortgage Insurance, a move that QBE says will give it a 40 per cent share of the Australian LMI market. All affirmed their 'A-/A3/A' ratings on QBE noting that the funding for the transaction would not materially increase QBE's leverage, should generate good returns for QBE and should require minimal capital support.S&P affirmed its 'AA-' insurer financial strength rating on PMI noting that PMI has a strong stand alone credit profile, including a robust business position, solid earnings history and very strong capitalisation. Moreover, QBE is expected to maintain PMI's risk based capital position and commit to maintaining PMI's capital in line with its rating category.Moody's 'Aa3' insurer financial strength rating assigned to PMI remains on review for possible downgrade. While acquisition by QBE is viewed as positive for credit quality, PMI is still in the process of diversifying its transitional reinsurance coverage. The review was initiated in July. Fitch affirmed its 'AA-' insurance financial strength rating on PMI and amended the outlook to stable from negative. The negative outlook was set in June and was more reflective of developments at that time with PMI's US parent.S&P followed Moody's from the week before and downgraded the SPUR on RB Pass Through Pty Ltd to 'BB' from 'BB+', citing the on-going adverse technical issues at the plant, highlighted by the recent failure of the sole turbine, which will halt power generation for nine weeks. S&P also revised the outlook on the 'BBB-/A-3' ratings assigned to Envestra Ltd to negative, to reflect a deteriorating financial profile, an unchanged aggressive approach to using debt to maintain shareholder returns and uncertainty over lifting creditworthiness to a level commensurate with its ratings.