CHICAGO, May 18 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has
maintained its Rating Watch--Down status on the 'A+' (Single-A-Plus) senior
debt rating and 'A' (Single-A) quarterly income preferred security rating
(the trust preferred security rating) of Hartford Financial Services Group,
Inc. (HIG). This follows today's announcement that HIG has reached agreement
to acquire the publicly owned shares of Hartford Life, Inc. (HLI).
In March 2000, HIG announced that it was considering the potential
acquisition of HLI's publicly owned shares. Currently, HIG owns approximately
82 percent of HLI. In March 2000, DCR placed the fixed-income and trust
preferred security ratings on Rating Watch--Down. The rationale at that time
was that ultimate financing for the purchase of outstanding HLI shares had not
yet been determined, but would likely result in an increase in HIG's financial
leverage at least on an interim basis.
As ultimate financing terms remain uncertain, DCR has maintained its
Rating Watch status. Once final financing terms have been determined, DCR
will revisit its Rating Watch on HIG.
DCR would anticipate removing its Rating Watch on HIG and reaffirming the
fixed-income ratings if financing remains within current rating expectations.
These expectations include that (a) increases in financial leverage are
modest, (b) the company can quickly return to its expected capitalization
structure in a reasonable time frame and (c) the sources of financing used to
return financial leverage to lower levels are deemed readily available.
For additional information, visit DCR's Web site at http://www.dcrco.com
(Quick Search: Hartford Financial). DCR's research is also available on
Bloomberg at DCR, FirstCall's BondCall Direct/Research Direct at
http://www.firstcall.com and Multex at http://www.multex.com, as well as
through other third-party providers.
Ratings on Rating Watch--Down:
Fixed-Income Rating - HIG
Senior Debt 'A+' (Single-A-Plus)
Fixed-Income Ratings - Hartford Capital I & II
Preferred Securities 'A' (Single-A)
Other HIG & HLI Ratings (not on Rating Watch):
Claims Paying Ability
Hartford Fire Intercompany Pool 'AA' (Double-A)
Hartford Life & Accident Insurance Co. 'AA+' (Double-A-Plus)
Hartford Life Insurance Co. 'AA+' (Double-A-Plus)
Hartford Life & Annuity Insurance Co. 'AA+' (Double-A-Plus)
American Maturity Life Insurance Co. 'AA+' (Double-A-Plus)
Fixed-Income Rating - HIG
Commercial Paper 'D-1' (D-One)
Fixed-Income Ratings - HLI
Senior Debt 'A+' (Single-A-Plus)
Commercial Paper 'D-1' (D-One)
Fixed-Income Rating - Hartford Life Capital I
Trust Preferred Securities 'A' (Single-A)
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
CONTACT:
Peter F. Patrino, CFA, 312-368-3266, or
patrino@dcrco.com, or Keith M. Buckley, CFA, 312-368-3211, or
buckley@dcrco.com, both of Duff & Phelps Credit Rating Co.
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