OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to the $300 million 6.0% non-cumulative preferred stock, Series G recently issued by The Hartford Financial Services Group, Inc. (The Hartford) (headquartered in Hartford, CT) [NYSE: HIG]. The outlook assigned to this Credit Rating (rating) is stable.
Following the preferred stock issuance, financial leverage will remain within guidelines for the assigned rating. Coverage metrics historically have been within guidelines, but deteriorated in 2017 as a result of various one-time charges. A.M. Best expects coverage metrics to improve in 2018 and be within guidelines. The Hartford intends to use the net proceeds of the offering for various purposes, which may include repayment of its 6.0% senior unsecured notes due Jan. 15, 2019, the acquisition of The Navigators Group, Inc., and general corporate purposes, such as for interest on debt and common stockholders’ dividends.
The Hartford’s Long-Term Issuer Credit Rating of “a-”, its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.
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