Posted on 20 May 2009
The $3.4 billion in federal bailout funds earmarked for The Hartford would improve its financial flexibility but could be viewed as a stigma and dampen sales and customer retention, Moody's said this week as it affirmed the company's credit ratings.
Moody's changed its outlook from negative to "developing" on the ratings for The Hartford Financial Services Group, which got preliminary approval for funds from the federal Troubled Asset Relief Program (TARP).
The bailout gives the company, stressed by investment losses and fulfilling guarantees on variable annuities, some breathing room. The Hartford said Monday it will keep its property-casualty business, which it had considered selling according to published reports.