Standard & Poor's on Tuesday said it is no longer reviewing Radian Group Inc for downgrade, saying the mortgage insurer has "very strong liquidity," which gives the company the flexibility to withstand difficult markets.

S&P had placed Radian on review for downgrade in August, after MGIC Investment Corp said it was not obligated to complete its merger with Radian, following turmoil in the mortgage market.

However, Radian's available liquidity "will enable the company to weather a very difficult period in the mortgage insurance industry," S&P said in a statement.

"Standard & Poor's views Radian's mortgage insurance (MI) subsidiaries' competitive position as very strong, and we believe changes in long-term fundamentals will enable Radian MI's core business to generate underwriting profits in 2009," S&P said.

S&P rates Radian "A," the sixth highest ranking. The outlook is negative, indicating a rating cut is likely over the next two years.