Fitch downgrades Willis

Fitch Ratings said it downgraded Willis North America Inc. and Willis Group Holdings Ltd.'s issuer default and senior unsecured ratings to BBB- from BBB after the company closed its acquisition of Hilb Rogal & Hobbs Co. for $2.1 billion including roughly $400 million of debt.

The outlook is negative.

Fitch said the action reflects an expectation of significantly increased financial leverage at Willis now that the deal has closed.

According to the agency, Willis said it expected the combined debt-to-EBITDA ratio to grow to 3.2x, which is well above Fitch's maximum of roughly 2.5x.

The action also reflects concerns about increases in the combined entity's exposure to intangible assets, the agency noted.

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