Willis faces ratings backlash after broker acquisition
Ratings agencies have reacted with concern to the reliance of major broker Willis on debt to fund its $US2.1 billion ($2.2 billion) purchase of Hilb Rogal & Hobbs (HRH).
Following last week’s acquisition announcement, Moody’s placed Willis under review for a possible downgrade, while Fitch put the broker on ratings watch negative and Standard & Poor’s cut Willis’ counterparty credit rating to BBB- with a negative outlook.
Willis will assume $US400 million ($422 million) of HRH debt following the deal, which it is financing using 50% cash and 50% stock.
Following last week’s acquisition announcement, Moody’s placed Willis under review for a possible downgrade, while Fitch put the broker on ratings watch negative and Standard & Poor’s cut Willis’ counterparty credit rating to BBB- with a negative outlook.
Willis will assume $US400 million ($422 million) of HRH debt following the deal, which it is financing using 50% cash and 50% stock.