Fitch rates USI Holdings loan BB-

Fitch Ratings said it assigned a BB- rating to USI Holdings Corp.'s $210 million five-year secured term loan credit facility and affirmed the company's BB- issuer default rating. The outlook is stable.

The rating actions follow the closing of USI's restructured bank credit facilities, including both the above mentioned term loan and a $75 million revolving line of credit.

Fitch said it views the restructuring of USI's bank credit facilities positively, as it believes the new structure enhances the company's liquidity and financial flexibility for future growth while it still limits financial leverage and promotes adherence to financial projections.

Additionally, the ratings continue to reflect USI's adequate capitalization, recent operating performance improvement, good cash flow and financial flexibility, niche market position and management experience, the agency said.

Partially offsetting these positives include historically high financial leverage, a significant amount of intangible assets related to the company's past acquisition activity, lower operating margins relative to middle-market peers, a lack of business diversity relative to the large global brokers and the effects of a softening property and casualty insurance market. At Dec. 31, total debt to total capital was 36.6%.

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