OREANDA-NEWS. Fitch Ratings has assigned a senior unsecured debt rating of 'BBB+' to Marsh & McLennan Companies, Inc.'s (MMC) new issue of \$500 million 2.35% senior notes due 2020. A full list of MMC's ratings follows at the end of this release. The Rating Outlook is Stable.

KEY RATING DRIVERS

Fitch expects MMC to use the net proceeds of this offering for general corporate purposes, which may include refinancing existing debt outstanding. Fitch expects that MMC's key credit ratios will continue to approximate recent levels over the next 12-24 months. Fitch generally views the prefunding of maturing debt favorably since it eliminates refinancing risk and improves the long-term liquidity profile from lower interest expense and extended debt maturities. MMC's debt maturities remain well-laddered including this new issuance.

MMC's consolidated EBIT operating margin, debt-to-EBITDA ratio, and EBITDA-to interest coverage ratios have each been consistently strong relative to the current rating category and are projected to remain so following the incremental debt issue.

As of year-end 2014, MMC's EBITDA-to-interest coverage and debt-to-EBITDA ratios were strong for the current rating category at roughly 16.0x and 1.3x, respectively. Fitch calculates the pro forma financial leverage ratio based on year-end 2014 levels and including the additional \$500 million of new debt to be below 1.5x.

MMC appears positioned to sustain recent improved performance levels due to a largely stable commercial pricing environment and improving global macroeconomic environment. In 2014, MMC's consolidated EBIT operating margin was 17.2%. The company's Risk & Insurance Services (RIS) and Consulting segments both reported organic revenue growth and year over year margin expansion during the period.

Looking forward, MMC's operating results could benefit from moderate growth in underlying insured exposure growth derived from a modestly growing global economy. Exposure growth benefits are partially offset by weakening primary insurance market pricing and significant rate softening in many reinsurance lines. These trends should have a modest net favorable impact on top-line growth in MMC's RIS and Consulting segments.

RATING SENSITIVITIES

Longer-term rating triggers that could result in a rating upgrade include sustained consolidated EBIT operating margins of 15% or better, accompanied by debt-to-EBITDA ratios consistently under 1.3x and EBITDA-to-interest ratios consistently in excess of 12.0x.

Key rating triggers that could lead to a rating downgrade if observed over a sustained period of time include MMC's debt-to-EBITDA multiple exceeding 2.0x or the company's EBITDA-to-interest coverage ratio deteriorating to levels below 8.0x. Additionally, Fitch could downgrade MMC's ratings if the company incurred additional, material charges arising from litigation or regulatory rulings.

Fitch assigns the following rating:

Marsh & McLennan Companies, Inc.
--\$500 million 2.35% senior debt due 2020 'BBB+'.

Fitch currently rates MMC as follows:

Marsh & McLennan Companies, Inc.
--Long-term Issuer Default Rating (IDR) 'BBB+';
--Short-term IDR 'F2';
--Commercial paper 'F2';
--\$250 million 2.30% senior debt due 2017 'BBB+';
--\$250 million 2.55% senior debt due 2018 'BBB+';
--\$300 million 2.35% senior debt due 2019 'BBB+';
--\$500 million 4.80% senior notes due 2021 'BBB+';
--\$250 million 4.05% senior debt due 2023 'BBB+';
--\$600 million 3.50% senior notes due 2024 'BBB+';
--\$500 million 3.50% senior debt due 2025 'BBB+';
--\$300 million 5.875% senior debt due 2033 'BBB+'.

The Rating Outlook is Stable.