Fitch affirms Marsh & McLennan ratings |
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Published
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Thu, 01 Feb 2007 18:45
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CHICAGO (AFX) - Fitch Ratings said Thursday it affirmed the 'BBB' senior debt rating of Marsh & McLennan Companies Inc., in light of plans to sell its Putnam Investments unit for $3.9 billion.Fitch also affirmed Marsh & McLennan's issuer default rating at 'BBB' and short-term rating at 'F2.' The rating outlook remains negative.The after-tax proceeds of the all-cash sale could total about $2.5 billion, which the company expects to partially use to pay down debt and for stock buybacks, Fitch said.The ratings agency said its decision to affirm Marsh & McLennan's ratings reflects expectations that the company's credit fundamentals will not deteriorate from current levels after the completion of its balance sheet restructuring.Fitch said the sale will free up Marsh & McLennan's officials from managing an underperforming business and let them focus more on improving their core insurance brokerage business.Although Putnam contributed more than one-third of Marsh & McLennan's pretax profit in 2001, it currently accounts for only about 20 percent of the company's profits, Fitch said.Marsh & McLennan shares rose 25 cents to $29.75 on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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