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Fitch Upgrades Marsh Ratings - Analyst Blog
2/7/2013 3:00:00 PM
Fitch Ratings upgraded the previously assigned Issuer Default Rating (IDR) and senior unsecured debt rating to "BBB+" from "BBB" of Marsh & McLennan Companies, Inc. ( MMC ). The rating carries a stable outlook.
The ratings upgrade came on back of the company's consistent
improvement in its operating performance and robust credit
metrics since the second half of 2010. The EBIT operating margin,
debt-to-EBITDA ratio and EBITDA-to interest coverage ratios of
Marsh & McLennan have been strong enough to be accounted for
in the ratings upgrade.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence in the stock as well as maintaining the creditworthiness in the market. We believe that the company's present score with the credit rating agencies will help it write more business going forward.
Last September, Standard & Poor's Ratings Services (S&P) reiterated the 'BBB-' counterparty credit rating, on Willis Group Holding PLC ( WSH ), another insurance broker. The rating was downgraded to stable from positive based on the rating agency's expectation that Willis will be unable to meet its standards.
Marsh & McLennan currently carries a Zacks Rank #3 (Hold). Among others from the industry, Ehealth Inc. ( EHTH ) carries a favorable Zacks Rank #1 (Strong Buy) whereas Brown & Brown Inc. ( BRO ) carries a Zacks Rank # 2 (Buy) and are worth noting.
BROWN & BROWN (BRO): Free Stock Analysis Report
EHEALTH INC (EHTH): Free Stock Analysis Report
MARSH &MCLENNAN (MMC): Free Stock Analysis Report
WILLIS GP HLDGS (WSH): Free Stock Analysis Report
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