Fitch cuts Hanover to stable

Fitch Ratings said it affirmed the A- insurer financial strength rating of the Hanover Insurance Co., the principal operating subsidiary of the Hanover Insurance Group.

The agency also said it affirmed Hanover Insurance Group's issuer default rating at BBB, 7.625% senior notes due 2025 at BBB-, 7.55% senior notes due March 1, 2020 at BBB- and 8.207% junior subordinated debentures due 2027 at BB.

The outlook has been revised to stable from positive.

The outlook revision follows news that the company has made an offer to acquire Chaucer Holdings plc, Fitch said.

While the acquisition would advance the company's specialty strategy and provide scale and earnings diversification benefits, the outlook revision reflects uncertainty tied to entering a new market outside of the United States, the agency said.

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