A.M. Best Assigns Debt Ratings to The Hartford's Senior Notes.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a-" to The Hartford Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group, Inc.'s (The Hartford) (Hartford, CT) [NYSE NYSE See: New York Stock Exchange : HIG HIG Human immunoglobulin, see there ] $500 million 5.375% 10-year senior unsecured notes. This rating action is in line with The Hartford's existing senior debt ratings, which remain unchanged. The outlook for all ratings is stable. The Hartford intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the senior notes issuance to pre-fund the $300 million of payments due at the maturity of their 4.70% notes, due 2007, and to pay down a portion of its commercial paper portfolio. At December 31, 2006, The Hartford's debt-to-total capital was below 20% and is expected to remain nearly unchanged after this transaction and the associated debt reduction. The Hartford's GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). interest coverage ratio remains strong at 11 times. Both the financial leverage and coverage ratios have improved over the last few years and remain well within A.M. Best's guidelines for its debt ratings. This improvement is reflective of solid earnings being generated by The Hartford's well diversified life and property/casualty operating subsidiaries. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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