Moody's affirms Hub

Moody's Investors Service said it affirmed Hub International Ltd.'s corporate family rating and senior unsecured notes at B3, senior subordinated notes at Caa1 and senior secured credit facilities at B2.

The outlook is stable.

The agency said Hub's credit strengths include its solid market presence in North American insurance brokerage, good diversification across products and geographic areas, strong operating margins and healthy cash flows.

Moody's said these strengths are tempered by the firm's aggressive financial leverage, its limited fixed charge coverage and challenging market conditions, which include a prolonged soft pricing cycle for commercial property and casualty insurance and a weak U.S. economy.

Following recent incremental borrowings, Hub's pro forma adjusted debt-to-EBITDA ratio for the trailing 12 months through September is 9 times, according to the agency's calculations.

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