Moody's affirms Hartford Financial's ratings

Moody's Investors Service said it has affirmed Hartford Financial Services Group's A3 senior debt ratings as well as the Aa3 insurance financial strength ratings of its both its P&C and Life insurance operating subsidiaries.

The outlook remains negative.

Moody's said the affirmation follows Hartford's recent announcement that it has agreed to a $1.15 billion global settlement of all asbestos claims arising out of its historical insurance relationship with Mac Arthur Co. and its subsidiary Western MacArthur Co. The agreement calls for payment of the full $1.15 billion to be made during the first quarter of 2004.

The company intends to fund the cost of the settlement entirely with existing reserves for asbestos liabilities. Hartford's management believes that Mac Arthur represents The Hartford's single largest asbestos exposure.

Moody's said liquidity at the operating company level will support the cash payment.

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