Insurance: Downgraded Rating Possible For The Hartford
October 9, 2008
Moody's Investors Service affirmed Aa3 (excellent) insurance financial strength ratings for The Hartford Financial Services Group on Wednesday, but it put the company's A2 (upper medium grade) debt rating on review for possible downgrade.
Moody's said it is maintaining a negative outlook on ratings of The Hartford's life insurance companies. The agency cited continued pressures on the investment portfolio, capital adequacy and profitability of the variable annuity business. The outlook on the property-casualty insurance companies remains stable.
Moody's said it has a favorable view of The Hartford's $2.5 billion capital-raising deal with Allianz, which was announced Monday. The agreement enables the German financial company to own nearly 24 percent of The Hartford.
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