Fitch revises Aon outlook to negative

Fitch Ratings said it revised the outlook for Aon plc and its related entities Aon Corp., Aon Global Holdings plc, and Aon Global Ltd. to negative from stable.

The outlook revisions follow Aon's announcement that it will acquire NFP Corp. Fitch also affirmed the companies' long-term issuer default ratings at BBB+.

“Fitch expects increased credit risk post Aon's $13.4 billion NFP acquisition, with estimated EBITDA leverage upon deal closing in the mid-to-high 3x range (well above Fitch's 2.75x negative sensitivity). This would also be an increase from its current run rate in the mid-2x range. Management has reaffirmed its commitment to maintaining its ratings and guided to both debt and leverage reduction post-close (targeted by mid-2025). Aon has a historic track record of managing a relatively conservative balance sheet that is appropriate for a solid investment-grade rating,”

“However, meaningful risks remain with a deal of this size that could prolong deleveraging,” the agency said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.