Moody's cuts Hartford Financial

Moody's Investors Service said it lowered the credit ratings of Hartford Financial Services Group, Inc. and its key operating subsidiaries and continued the negative outlooks because of expected continued weakness in earnings and reduced capitalization resulting from investment losses and substantial business exposure to variable annuities.

Moreover, the risk of further investment losses and diminished earnings beyond its base case expectations is meaningful in view of unsettled markets and deteriorating economic conditions, the agency said.

The agency added that Hartford's long-term senior debt rating was downgraded to Baa3 from Baa1 and the short-term debt rating to P-3 from P-2.

In the same action, Moody's said it downgraded the insurance financial strength ratings for the company's lead property and casualty to A2 from A1 and life insurance operating subsidiaries to A3 from A1.

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