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.
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