Fitch Ratings Downgrades Hartford Financial (HIG)

June 30, 2009 2:06 PM EDT

Fitch Ratings dowgnraded and downgraded and removed from Rating Watch Negative the
following Hartford Financial Services Group, Inc. (NYSEl HIG) ratings.

• $500 million 8.125% junior subordinated debentures due 2068 to 'BB' from 'BB+'
  
• $1.75 billion 10% junior subordinated debentures due 2068 to 'BB' from 'BB+
  
• Fitch has also assigned a 'BB' rating to HFSG's senior perpetual preferred stock issued under the U.S. Treasury's Capital Purchase Program (CPP).
  
• The Rating Outlook is Negative.

Fitch said, "Overall, Fitch views the additional capital received as positive to the company in that it enhances near-term financial flexibility in a period of challenging capital markets access, and could ultimately help to stabilize ratings. However, the downgrade of HFSG's hybrid securities reflects Fitch's belief that the receipt of government support and the accompanying tighter debt service requirements could increase risk of deferral for hybrid securities, particularly given the sizable amount of CPP funds relative to the existing capital structure."

Stocks Mentioned

Related Entities

• Fitch Ratings
• Treasury Capital Purchase Program

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