S&P rates Marsh & McLennan notes BBB-

Standard & Poor's said it assigned a BBB- rating on Marsh & McLennan Cos.'s proposed $500 million of 4.8% senior notes due 2021.

The agency said it expects that the company's financial leverage will decrease slightly following the issuance of the proposed senior notes.

This is based on an expectation that the company will complete the senior note issuance in conjunction with a $600 million tender offer of a portion of its outstanding 5.375% notes due 2014 and 5.75% notes due 2015, S&P said.

The proposed transaction should also improve the company's financial leverage on a qualitative basis by extending part of its 2014 and 2015 maturities by another six to seven years while taking advantage of the currently low interest rates, the agency said.

S&P said it believes the proposed tender offer and senior note issuance does not pose any material financial risk because the tender offer is contingent on successful refinancing.

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