Moody's rates Alliant Resources

Moody's Investors Service said it assigned a B2 senior implied rating to Alliant Resources Group Inc.

The outlook is stable.

Moody's said the senior implied rating reflects Alliant's position as the 14th largest domestic U.S. insurance brokerage firm following its formation through a series of acquisitions beginning in 2000 and its presence in several unique customer niches, including Indian Nations, law firms and public entities.

Offsetting these positive factors are the company's short operating history, modest scale and relatively less established franchise, very high financial leverage and weak interest and cash flow metrics relative to total debt, according to Moody's.

The rating agency expects EBIT margins in the low to mid-20s, and debt to EBITDA to moderate to about 3x over the near term. Moody's also expects interest coverage, which was 4.3x in 2003 and 3.2x in 2002, to be at least in the 1x to 2x range.

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