Posted on 10 Feb 2009
New York-based Standard & Poor's Corp. has downgraded Hartford Financial Services Group Inc.'s counterparty credit rating to A- from A and put the insurer’s other ratings under review with negative implications.
The reasons for the but is Hartford’s deteriorating business as well as the current economic conditions, according to the S&P.
“Because of the sharply lower equity markets, Hartford’s earnings from equity-linked products have decreased, and actual and potential reserve and capital requirements have increased,” analyst Robert A. Hafner said in a statement.
“Compounding these pressures are concerns that investment losses could increase beyond expectations for the ratings unless general economic conditions stabilize," Mr. Hafner said.