Radian Group Inc. said Tuesday it may sell its financial guarantor subsidiary, Radian Asset Assurance, in an effort to raise capital to buttress its mortgage business.

Earlier today, Standard & Poor’s lowered the rating on Radian Group to BBB, from A-minus, and the rating on the mortgage insurance subsidiary Radian Guaranty to A, from A-minus. While the downgrades did not directly affect Radian Asset, the company said it was evaluating its strategic options, which could include a sale of the financial guarantor.

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