MGIC Investment Corp. said Friday that it plans to defer a $17.5 million interest payment on $390 million of debt, and Standard & Poor's Corp. slashed the mortgage insurer's credit rating as a result.

The Milwaukee insurer said it was holding off on the payment so it can keep more cash on hand to cover rising mortgage losses.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.