Moody's may still cut Marsh

Moody's Investors Service said it is continuing its review for possible downgrade of the long-term (senior unsecured at Baa2) and short-term (commercial paper at prime-2) credit ratings of Marsh & McLennan Cos. Inc.

Marsh & McLennan recently entered into a commitment letter for a new $1 billion term loan facility and proposed amendment to its $1.7 billion revolving credit facilities. These facilities contain provisions that are favorable to the arranging banks, according to Moody's.

Moody's said it believes these features create a distinction between the credit quality of the facilities and the senior notes because they effectively subordinate the current holders of senior unsecured bonds.

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