Moody's rates Willis Group notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the $600 million of guaranteed senior unsecured notes being offered by Willis North America Inc. (Willis North America), whose ultimate parent is Willis Group Holdings Ltd. Net proceeds from the offering will be used to repurchase common stock, repay borrowings and for general corporate purposes. The offering constitutes a drawdown under a universal shelf registration shared by Willis Group and two intermediate holding companies, Trinity Acquisition Ltd. and Willis North America.

Moody's also said it affirmed the group's existing ratings, including Willis Group Holdings senior unsecured debt at provisional Baa3, subordinated debt at provisional Ba1 and preferred stock at provisional Ba2,

Trinity Acquisition's guaranteed senior unsecured debt at provisional Baa2, guaranteed subordinated debt at provisional Baa3 and Willis North America's guaranteed senior unsecured debt at Baa2, guaranteed senior unsecured debt at provisional Baa2 and guaranteed subordinated debt at provisional Baa3.

The ratings reflect the group's strong market position in insurance brokerage along with healthy operating margins and interest coverage, as well as strong geographic and product diversification, Moody's said.

These strengths are tempered by the group's moderate size relative to the two largest brokers and by softening market conditions in various property and casualty insurance lines, the agency added.

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