The PMI Group, Inc. Comments on Fitch Revisions to U.S. Mortgage Insurance Capital Model and Ratings Actions

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The PMI Group, Inc. Comments on Fitch Revisions to U.S. Mortgage Insurance Capital Model and Ratings Actions

2nd September, 2007

The PMI Group, Inc. (NYSE: PMI) announced today that consistent with its revisions of its capital model for U.S. mortgage insurance companies, Fitch Ratings (Fitch) has changed the insurer financial strength ratings for PMI Mortgage Insurance Co. and PMI Guaranty Co. to AA from AA+. Fitch has noted that these changes are the result of revisions Fitch made to its capital model for U.S. mortgage insurance companies. Fitch affirmed ratings for PMI Australia and PMI Europe at AA and for The PMI Group, Inc. at A+. Fitch's Outlook for The PMI Group, Inc. and related subsidiaries' ratings is Stable.

Steve Smith, CEO of The PMI Group, Inc., said, "It is important to recognize that the ratings changes made by Fitch were primarily driven by a change in their ratings methodology and capital model, not by a deterioration in the financial position or results of The PMI Group, Inc. or our subsidiaries. PMI Mortgage Insurance Co.'s AA ratings from Fitch and Standard and Poor's and Aa2 rating from Moody's Investor Services speak to our position as a strong mortgage insurance counterparty for our customers in the U.S. and international credit enhancement markets. PMI Guaranty Co.'s AA rating from Fitch, along with AA ratings from Standard and Poor's and Aa3 ratings from Moody's Investors Services, provides strong ratings upon which PMI Guaranty can continue to successfully offer mezzanine and remote loss credit enhancement solutions for structured portfolio transactions and capital markets executions."

In announcing its ratings changes, Fitch noted a declining U.S. residential real estate market and PMI's related exposure and cited PMI's solid franchise, strong balance sheet at the AA rating stress level, experienced management team, and high quality insured portfolio as measured by FICO score distribution and other risk layering characteristics. Fitch also noted that The PMI Group, Inc. derives benefit from diverse earnings streams from international mortgage insurance as well as operations outside of the mortgage insurance space, primarily financial guaranty.

The PMI Group, Inc.

The PMI Group, Inc. (NYSE: PMI), headquartered in Walnut Creek, CA, provides innovative credit, capital, and risk transfer solutions that expand homeownership and fund essential services for our customers and the communities they serve around the world. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products, financial guaranty insurance, and financial guaranty reinsurance. PMI has operations in Asia, Australia and New Zealand, Canada, Europe, and the United States. PMI is rated A by Standard and Poor's, A1 by Moody's, and A+ by Fitch. For more information: .

Cautionary Statement: Statements in this release that are not historical facts or that relate to future plans, events or performance are "forward- looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include our discussion with respect to the financial strength of PMI Mortgage Insurance Co. and future business outlook of PMI Guaranty Co. Many factors could cause actual results to differ materially from those expressed or implied by forward-looking statements. Risks and uncertainties, including changes in the economic and market conditions, changes in the performance and make-up of our various investment and credit enhancement portfolios (including higher losses incurred) and changes in the demand for credit enhancement products offered by PMI Mortgage Insurance Co. and PMI Guaranty. Other risks and uncertainties are discussed in PMI's SEC filings, including its Form 10-Q for the period ended June 30, 2007 and its Form 10-K for the year ended December 31, 2006. PMI undertakes no obligation to update forward-looking statements.

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