Fitch assigns Marsh & McLennan notes BBB

Fitch Ratings said it assigned a rating of BBB to the $500 million of 4.8% senior notes due 2021 that were issued by Marsh & McLennan Cos., Inc.

The proceeds will be used to repurchase about $600 million outstanding aggregate principal amount of its 5.375% notes due 2014 and 5.75% notes due 2015 by means of separate tender offers.

The agency also said it affirmed the company's issuer default rating at BBB, short-term issuer default rating at F2 and commercial paper rating at F2.

The company has BBB ratings on its $250 million of 6.25% senior debt due 2012; $250 million 4.85% senior debt due 2013; $320 million of 5.375% senior debt due 2014; $480 million of 5.75% senior debt due 2015; $400 million of 9.25% senior debt due 2019 and $300 million of 5.875% senior debt due 2033.

The outlook is stable.

The affirmation follows an updated review of the company's financial performance, balance sheet strength, liquidity and debt-servicing capabilities, Fitch said.

The company's debt-to-EBITDA and interest coverage ratios could improve modestly following the transaction due to a $100 million debt reduction and lower coupon rate on the new securities, the agency said.

The ratings also consider its competitive position as one of the world's largest diversified services firms and strong financial flexibility, Fitch said.

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