S&P assigns Hartford Financial Services notes A

Standard & Poor's said it assigned its A senior unsecured debt rating to the proposed offering of $650 million of senior unsecured notes by Hartford Financial Services Group Inc. (HIG) in exchange for Hartford Life Inc.'s (HLI) $250 million 7.65% senior unsecured notes due June 15, 2027 and $400 million 7.375% senior unsecured notes due March 1, 2031.

The agency said that the rating assigned to HIG's proposed notes reflects the A counterparty credit ratings on HIG and its expectation that the proposed senior unsecured notes will be structured to be economically equivalent, but not necessarily identical, to the $650 million of existing HLI notes so that the exchange will result in a simplified capital structure with minimal net impact on the group's consolidated leverage or coverage metrics.

Although HLI maintains the ability to issue debt, future debt issued by the group is expected to originate from HIG rather than HLI, the agency added.

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