The Hartford jettisoned from commercial paper program

The Hartford (Conn.) Financial Services Group Inc. yesterday said that would no longer be able to participate in a federal commercial paper program.
Last October, the Federal Reserve Board created the Commercial Paper Funding Facility to purchase three-month commercial paper from eligible issuers, thus improving liquidity. The Hartford sold $375 million to the facility, according to the insurer’s annual statement, which was filed with the Securities and Exchange Commission.
The insurer’s debt received downgrades from Moody’s Investors Service Inc., Standard & Poor’s and Fitch Ratings Inc., all of New York, making it ineligible to sell any more short-term debt to the facility.
As a result, The Hartford will have to use its own funds to pay for the maturing commercial paper issued by the facility.
The Hartford joins fellow insurer Genworth Financial Inc. of Richmond, Va., which was also booted from the facility after receiving downgrades.