S&P: Willis on developing watch

Standard & Poor’s said it placed the BBB- corporate credit and issue ratings on Willis Group Holdings plc and its related subsidiaries on CreditWatch with developing implications.

The CreditWatch placement follows news that Willis reached a definitive agreement for an all-stock merger of equals with Towers Watson in a transaction valued at about $18 billion, S&P said.

Upon the closing of the transaction, Willis’ shareholders are expected to own about 50.1% of the combined group’s stock with Towers Watson’s shareholders owning the remaining 49.9% of the group, the agency said.

The CreditWatch placement reflects the limited information regarding the details of the transaction and the resulting uncertainty regarding the transaction’s effect on Willis’ prospective strategic objectives, competitive position, earnings and cash flow generation capabilities, S&P said, and prospective capital structure and leverage appetite.

But, the proposed merger could significantly strengthen Willis’ competitive position through greater diversity of product, geography and client base, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.