Fitch might cut HRG Group

Fitch Ratings said it placed HRG Group, Inc.’s B long-term issuer default rating, BB-/RR2 senior secured note rating and B/RR4 senior unsecured note rating on Rating Watch Negative.

Fitch said the negative watch reflects HRG's continued weak upstream dividend coverage of holding company interest expenses combined with increased strategic uncertainty following the terminated sale of one of HRG's portfolio companies.

In April, one of HRG's portfolio investments, Fidelity & Guaranty Life (FGL; Long-term issuer default rating BB; Rating Watch Evolving), announced that it terminated a merger agreement with Anbang Insurance Group Co., Ltd. FGL continues to explore a sale, which if consummated would result in potential deleveraging and improved upstream dividend coverage for HRG, the agency explained.

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