Fitch revises HRG watch to evolving

Fitch Ratings said it revised the Rating Watch on HRG Group, Inc.'s B long-term issuer default rating to evolving from negative.

Fitch also said it revised the Rating Watch on HRG's senior secured notes and senior unsecured notes to evolving from negative.

The evolving watch follows news that a consortium led by CF Corp. will acquire Fidelity & Guaranty Life, a company that is 80.4% owned by HRG, for a total of about $1.8 billion plus the assumption of $405 million of existing debt.

The consortium includes the founders of CF Corp., funds affiliated with the Blackstone Group, LP and Fidelity National Financial, Inc., Fitch said.

HRG also recently announced the sale of Front Street Re (Delaware) Ltd., which is wholly owned by HRG to CF Corp. for $65 million, the agency said.

The evolving watch reflects that HRG's ratings may move upward, downward or stay the same, depending on the outcome of HRG's exploration of strategic alternatives to maximize shareholder value, Fitch said.

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