S&P lifts HRG Group to stable

Standard & Poor’s said it affirmed all of the ratings on HRG Group Inc., including its B corporate credit rating, B+ senior secured note rating and CCC+ senior unsecured note rating.

The agency also said it revised the outlook to stable from negative.

HRG Group will receive about $1.25 billion gross proceeds from the proposed sale of its 81%-owned subsidiary Fidelity & Guaranty Life to Anbang Insurance Group Co. Ltd., S&P said.

The proposed transaction will enhance HRG’s financial flexibility, the agency said.

The ratings and outlook assume that the transaction will close consistent with expectations, S&P said.

The outlook revision also considers an expectation that HRG will use a substantial amount of its proceeds it receives from the sale for debt repayment and liquidity enhancement, the agency said.

The ratings reflect the company’s weak asset diversity, which will worsen following the Fidelity & Guaranty sale, S&P said.

The ratings also consider HRG’s inconsistent track record with respect to investment performance, the agency said.

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