Fitch says it will assign investment-grade rating to Aon’s $1.5 billion senior unsecured notes

Fitch to give “BBB+” rating on Aon’s new notes

CHICAGO — Fitch Ratings expects to issue an investment-grade rating to Aon Corp.’s $1.5 billion senior unsecured notes.

The rating of notes a “BBB+” is based on the insurance broker’s current “BBB+” issuer default rating and reflects the company’s strong balance sheet and reasonable debt profile, Fitch said Tuesday. Long-term, Fitch believes Aon’s $4.9 billion acquisition of Hewitt Associates will create annual expense savings of $355 million and help enhance the company’s business.

In July, Aon said it’s buying human resources specialist Hewitt Associates of Lincolnshire, Ill., for $4.9 billion in cash and stock. The deal will nearly triple the size of Aon’s consulting business.

Fitch expects the proceeds from this new senior debt issuance will refinance the $1.5 billion of short-term bank debt needed for the sale. The agency said Aon has all the necessary debt financing for the cash portion of the deal.

The transaction is expected to close by the end of this year.