Moody's confirms that MMC's rating outlook remains on negative...
Moody's has affirmed the “Baa2” senior unsecured debt rating and the Prime-2 short-term debt rating of Marsh & McLennan Companies following the company's announcement that it will sell Putnam.
The rating outlook for MMC remains negative.
MMC has agreed to sell Putnam to Great-West Lifeco, a financial services holding company controlled by Canada-based Power Financial Corporation, for $3.9bn in cash, subject to certain adjustments.
MMC expects to receive net after-tax proceeds of $2.5bn, to be allocated over time among acquisitions, stock repurchases and debt reduction.
The rating affirmation is based on Moody's view that MMC will protect its financial flexibility through the sale process and through the subsequent allocation of proceeds.
The negative rating outlook reflects the uneven pace of the MMC's business recovery and its relatively weak, albeit improving, financial metrics for the current rating level. Moody's notes that MMC has steadily improved its financial position over the past two years.
