AM Best assigns an issue credit rating to the new senior unsecured bonds of The Hartford Financial Services Group, Inc.
OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best assigned a long-term issue credit rating (long-term IR) of “a-” (excellent) to The Hartford Financial Services Group, Inc. (The Hartford) (head office in Hartford, CT) [NYSE: HIG] recently announced $ 600 million, 2.9% senior unsecured notes, due September 2051. The outlook for this credit rating (rating) is stable.
The proceeds from the sale of the Notes will be used to repay the outstanding $ 600 million principal amount of the Company’s 7.875% Fixed to Variable Subordinated Debentures due 2042, which are redeemable at par effective April 15, 2022. AM Best expects Hartford’s leverage to increase slightly immediately after issuance, but it will stay well within guidelines to support its current ratings. Coverage ratios remain favorable to The Hartford’s ratings, which were confirmed at the end of July 2021 (see associated press release).
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