3/17/2010-Standard & Poor's Ratings Services lowered its outlook on its BBB rating of Hartford Financial Services Group (NYSE:HIG) to negative because investment losses have kept the insurer's earnings from improving at a brisk-enough pace.
The move comes a day after Hartford announced it would sell $3.05 billion in stock and debt to raise money to repay federal funds it received under the Troubled Asset Relief Program.
The insurer plans to buy back the $3.4 billion in preferred shares issued to the Treasury Department in exchange for a capital infusion last year, pending regulatory approval.
"We believe HIG's modest prospective financial flexibility in the face of its ongoing sensitivity to equity markets and investment results could converge to erode the company's financial strength," analyst Shellie Stoddard said.
Keywords: hartford financial S&P poor's outlook rating
Ticker(s): HIG
