Moody’s Investors Service has affirmed its credit ratings on life insurer the Hartford Financial Services Group Inc., and raised its outlook to developing, from negative.
The change follows The Hartford’s announcement last week that the Treasury Department has decided the insurer is eligible for $3.4 billion from the Troubled Asset Relief Program, or TARP.
Moody’s said the affirmation affects $6.2 billion in securities.
“The developing outlook for The Hartford’s ratings reflects a continued high level of uncertainty regarding the company’s overall credit profile, with a mix of both opportunities and risks,” Moody’s wrote.
Moody’s said the TARP funding would improve The Hartford’s financial flexibility. However, while the money helps relieve the near-term financial strain, it’s not without risks, said Moody’s Senior Credit Officer Paul Bauer.
“The addition of the U.S. Treasury as a major stakeholder of the company adds an element of political risk and could result in restrictions to operational flexibility,” he said. (AP)
