Fitch affirms Willis

Fitch Ratings said it affirmed Willis North America Inc.'s issuer default and senior unsecured note ratings at BBB- and Willis Group Holdings Ltd.'s issuer default rating at BBB-.

The outlook is negative.

The outlook reflects the belief that Willis may be challenged to realize the expected benefits from the acquisition of Hilb Rogal & Hobbs Co. due to the softening insurance cycle that is depressing growth opportunities and pressuring profit margins for insurance brokers, according to the agency.

Ratings reflect the company's insurance brokerage operations, which have outperformed those of its closest competitors for several years, the agency said.

Ratings also consider the company's exposure to intangible assets.

Ratings also recognize the liquidity risk posed by the equity put option held by external investors in the company's minority-owned associate Gras Savoye, the agency noted.

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