Moody's confirms Marsh & McLennan

Moody's Investors Service said it confirmed the senior debt rating of Marsh & McLennan Cos. Inc. at Baa2. The commercial paper rating was also confirmed at prime-2. The outlook is negative.

According to Moody's, the rating confirmation reflects the fact that, while the company's current financial profile would suggest a lower rating, the recovery plan now underway is expected to return the company to a position consistent with a strong Baa rating over the next two years.

Numerous regulatory investigations and associated direct and indirect costs have taken a severe toll on Marsh's business and require substantial changes to the business, both financial and operational, Moody's said.

These changes follow on the heels of trouble at the company's asset management subsidiary, Putnam Investments. However, Mercer, which provides consulting and human resource outsourcing services, has continued to earn relatively consistent returns over time.

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