Fitch puts Willis on watch

Fitch Ratings said it placed the BBB issuer default ratings on Willis North America Inc. and Willis Group Holdings Ltd. on Rating Watch negative.

Also on watch are Willis North America's BBB ratings for its senior unsecured notes.

The possible downgrade follows Willis' agreement to purchase all outstanding common shares of Hilb Rogal & Hobbs Co. for $1.7 billion due to Willis assuming $400 million of debt.

Fitch said it expects to downgrade Willis at least one but not more than two notches following the expected close in the fourth quarter.

According to the agency, Willis management said that it expected the combined entity's debt-to-EBITDA ratio to rise to 3.2 times.

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