Standard & Poor's has raised its outlook on The Hartford Financial Services Group Inc. and its insurance operating companies to stable from negative, largely because of The Hartford's participation in the Treasury's TARP program. "This rating action stems primarily from Hartford's participation in the U.S. Treasury Department's Capital Purchase Program under the Troubled Asset Relief Program," explained Standard & Poor's credit analyst Shellie Stoddard. "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." The expected $3.4 billion raised will serve as a cushion – at a relatively low cost of capital – offsetting the risk of increasing equity linked liabilities costs under more severe equity market conditions, S&P said.