Moody's rates AssuredPartners loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to AssuredPartners Capital, Inc.

The agency also assigned B2 ratings to the company's $100 million first-lien revolving credit facility and $420 million first-lien term loan B2 and a Caa2 rating to its $135 million second-lien term loan Caa2.

The refinancing will also be used to fund acquisition activity. The transaction is expected to close within the next several weeks.

The outlook is stable.

Moody's said AssuredPartners' ratings reflect its increasing market position in North American insurance brokerage, mix of business between P&C insurance and employee benefits, and good EBITDA margins. These strengths are offset by the company's high financial leverage and low interest coverage associated with its planned 2014 refinancing.

Additionally, the agency said it expects that AssuredPartners will continue to aggressively pursue acquisitions, giving rise to integration and contingent risks (e.g., exposure to errors and omissions).

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