Fitch reviews USI for rating change |
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Thu, 18 Jan 2007 07:23
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CHICAGO (AFX) - Credit ratings agency Fitch Ratings said Tuesday it may change its rating on insurance broker USI Holdings Corp.'s debt, depending upon the outcome of its agreement to be acquired by GS Capital Partners, a private equity affiliate of Goldman Sachs Group.The proposed transaction, valued at $1.4 billion, includes repayment of an estimated $380 million of USI's debt.USI's issuer default rating with Fitch is currently 'BB-'. Fitch said it could lift its rating on the company's debt if the transaction decreases its financial leverage while increasing equity. A downgrade could result in a material increase in USI's financial leverage, changes to its operating strategy or changes to its senior management.Shares of USI were down 4 cents at $16.51 in afternoon trading on the Nasdaq.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Fiat ratings could be raised in H2 2007 - Fitch analyst 