S&P boosts rating on The Hartford

Standard & Poor's Ratings Services today boosted its outlook on the Hartford Financial Services Group, citing better flexibility for the company as it prepares to receive government aid.

S&P revised its outlook on The Hartford to stable from negative.

Standard & Poor's credit analyst Shellie Stoddard said the action stems  primarily from The Hartford's participation in the U.S. Treasury Department's Troubled Asset Relief Program (TARP).

"Participation in the program enhances Hartford's financial flexibility, which we had viewed as a considerable weakness because of significant asset impairments and our prospective asset stress analysis," Stoddard said.

The Hartford is getting $3.4 billion under TARP as a capital cushion for the company if it encounters further losses. The Hartford also plans a $750 million common stock offering.