NEW YORK, Feb 9 (Reuters) - Standard & Poor's on Monday downgraded ratings on Hartford Financial Services Group and said the weak economy and slumping share prices will continue to weigh on earnings.
The agency cut Hartford's counterparty credit rating by one notch to 'A-minus,' or seventh-highest investment grade.
The outlook for the company and its main operating units is negative, meaning S&P could cut the ratings again within two years.
The actions 'reflect deteriorating business and macroeconomic conditions, which are increasing strains on the group by eroding earnings and pressuring capitalization,' said S&P analyst Robert Hafner.
Falling equity markets have decreased the value of earnings from equity-linked products, while potential reserve and capital requirements have increased, he said. See
S&P expects to resolve the CreditWatch status within a month, after a review of the company's investments, capital needs and earnings outlook, said Hafner.
Moody's Investors Service on Friday downgraded Hartford to 'Baa1,' or eighth-highest investment grade, citing capital concerns and worry about investment losses. See .
(Reporting by Ciara Linnane)
((ciara.linnane@thomsonreuters.com; +1 646 223 6342; Reuters Messaging: ciara.linnane.reuters.com@reuters.net)
Keywords: HARTFORD RATINGS/SANDP
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The agency cut Hartford's counterparty credit rating by one notch to 'A-minus,' or seventh-highest investment grade.
The outlook for the company and its main operating units is negative, meaning S&P could cut the ratings again within two years.
The actions 'reflect deteriorating business and macroeconomic conditions, which are increasing strains on the group by eroding earnings and pressuring capitalization,' said S&P analyst Robert Hafner.
Falling equity markets have decreased the value of earnings from equity-linked products, while potential reserve and capital requirements have increased, he said. See
S&P expects to resolve the CreditWatch status within a month, after a review of the company's investments, capital needs and earnings outlook, said Hafner.
Moody's Investors Service on Friday downgraded Hartford to 'Baa1,' or eighth-highest investment grade, citing capital concerns and worry about investment losses. See .
(Reporting by Ciara Linnane)
((ciara.linnane@thomsonreuters.com; +1 646 223 6342; Reuters Messaging: ciara.linnane.reuters.com@reuters.net)
Keywords: HARTFORD RATINGS/SANDP
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.