New York’s Fitch Ratings says it’s keeping its negative watch on issuer-default and financial-strength ratings until embattled Hartford insurer Phoenix Cos. Inc. delivers on its promise to deliver revised financials to Wall Street next month.
Fitch said recently Phoenix’s issuer default rating remains a “B”, and “BB” for the insurer financial strength ratings of the insurer’s primary operating units.
Investors rely on such ratings in deciding whether or not to invest in a corporation’s publicly issued debt.
As previously reported, Phoenix is due to report in March restated financials for several prior periods due to an accounting glitch.
Phoenix pledged to turn over to its bond trustee restated financials by the extended March 31 deadline. The SEC’s 10-Q filing deadline is March 18.
Insurance-rating agency A.M. Best Co., too, has said it is reviewing Phoenix’s financial situation, with potential negative implications.
Best, of Oldwick, N.J., currently rates Phoenix’s financial strength a “B+”, while its insurance units hold Best’s issuer credit rating of “bbb-”.
