The Hartford's Fitch Ratings Affirmed

The Hartford's Fitch Ratings Affirmed

NU Online News Service, May 23, 3:57 p.m. EDT?Fitch Ratings said today it has affirmed all ratings on The Hartford Financial Services Group Inc.

Fitch's evaluation included an insurer financial strength rating for The Hartford Fire Intercompany Pool and fixed income ratings.

The action came, Fitch noted, after it observed the company's "successful" completion of its planned capital-raising effort.

Earlier this week, the Hartford, Conn.-based insurer raised $1.95 billion from its capital offerings, $100 million more than originally expected. These offerings were part of the company's plan to shore up its balance sheet after announcing an increase of its asbestos reserves by $2.6 billion and posting a $1.7 billion charge to first-quarter earnings.

The New York-based ratings firm also added that it has removed all Hartford ratings from its "Rating Watch Negative" and has assigned "Stable" for its rating outlook.

Fitch had originally placed The Hartford's ratings on "Rating Watch" in January when the company announced it had started a comprehensive review of its asbestos liabilities. Fitch had noted then that there were two "uncertainties" it was concerned about--the size of The Hartford's asbestos charge and its related capital-raising activities.

But today, Fitch stated in its ratings report that "the asbestos study is thorough and capitalization remains sound, thus the ?Rating Watch Negative' has been removed."

The ratings firm also suggested that, following The Hartford's capital raising activities, the company is now more strongly reserved for asbestos exposure and is maintaining stable capitalization at the holding company as well as in the insurance operating units.