Moody’s rates Marsh & McLennan notes Baa1

Moody's Investors Service said it assigned Baa1 ratings to €550 million of 7.5-year and €550 million of 11-year senior notes being issued by Marsh & McLennan Cos., Inc.

Proceeds will be used to fund in part the company’s pending acquisition of Jardine Lloyd Thompson Group plc, including the payment of related fees and expenses, and to repay some Jardine debt, as well as for general corporate purposes.

The outlook remains negative.

“MMC's acquisition of JLT is strategically sound but credit negative based on the pending increase in financial leverage and the execution risk,” Moody’s said in a news release.

The agency also noted that the acquisition carries execution risk for Marsh & McLennan, including potential attrition among producers and clients.

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