Moody’s Investors Service lowered the credit ratings and issued a negative outlook for the Hartford Financial Services Group Inc. and its key operating subsidiaries.
The Hartford’s long-term senior debt rating was downgraded to Baa3 from Baa1 and the short-term debt rating to P-3 from P-2. In the same action, Moody’s downgraded the insurance financial strength ratings for the company’s lead property and casualty to A2 from A1 and life insurance operating subsidiaries to A3 from A1.
Moody’s said it continues its negative outlook on the ratings because of expected continued weakness in earnings and reduced capitalization resulting from investment losses and substantial business exposure to variable annuities.
Moreover, Moody’s said, the risk of further investment losses and diminished earnings beyond our base case expectations is meaningful in view of unsettled markets and deteriorating economic conditions.
At 11 a.m., The Hartford traded at $7.30, down 41 cents, or 5.3 percent.
