Moody’s rates Marsh & McLennan notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to $600 million of 10.5-year senior unsecured notes being issued by Marsh & McLennan Cos., Inc. (senior unsecured debt Baa1, commercial paper Prime-2).

The outlook is stable.

"MMC continues to perform well across its four major businesses," Bruce Ballentine, Moody's lead analyst for Marsh & McLennan, said in a news release. "The company can accommodate the increased borrowings through its steady growth in EBITDA."

Based on Moody's calculations (which incorporate standard accounting adjustments), the company’s debt-to-EBITDA ratio was 2.7 times and its (EBITDA – capex) interest coverage was about 8 times for the 12 months through June 2015. The proposed debt issuance will lift the company's debt-to-EBITDA ratio to about 2.9 times, which is consistent with rating expectations of leverage in range of 2.5 times to 3 times.

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