OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a-” to the recently announced $500 million 4.40% senior unsecured notes due 2048 of 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 senior unsecured note issue, 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 in 2018 to improve and be within guidelines. The Hartford intends to use the net proceeds of the offering for general corporate purposes, including the repayment at maturity of its $320 million principal amount of 6.30% senior notes due 2018.
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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