OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned the Long-Term Issue Credit Ratings (Long-Term IR) of “a-” to The Hartford Financial Services Group, Inc.’s (The Hartford) (headquartered in Hartford, CT) [NYSE: HIG] recently announced $600 million 2.8% senior unsecured notes due 2029 and the $800 million 3.6% senior unsecured notes due 2049. The outlooks assigned to these Credit Ratings (ratings) are stable.
The proceeds from the sale of the notes will be used towards The Hartford’s recently announced tender offers and intended redemptions for any and all of the outstanding balance of the $800 million in 5.125% senior notes due 2022 issued by The Hartford and the $265 million in 5.75% senior notes due 2023 issued by The Navigators Group Inc. The remainder will be used for general corporate purposes.
AM Best expects The Hartford’s financial leverage to increase modestly immediately following the issuances, but it will remain well within guidelines to support its current ratings. In addition, coverage ratios should improve modestly over time due to the lower coupon rates of the new debt.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Contacts
Lewis DeLosa, CFA
Financial Analyst
+1 908 439 2200, ext. 5529
[email protected]
Michael Lagomarsino, CFA, FRM
Senior Director
+1 908 439 2200, ext. 5810
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Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
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Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]
