Standard & Poor’s Ratings Services assigned its ‘A-’ rating to Aon Corp.’s $225 million 144a senior notes offering scheduled to mature in 2012.
“The proceeds of the offering are expected to be used to refinance selective existing debt obligations,” said S&P’s credit analyst Matthew Coyle. “As a result, the transaction is not expected to change Aon’s financial leverage, which is expected to be about 40 percent at year-end 2002.”
Included in this estimate is close to $900 million of proceeds from the sale of common equity and private convertible debt instruments in the fourth quarter and an estimated $450 million-$550 million charge to shareholders equity for unfunded pension liabilities. S&P’s believes the action provides the company with a more manageable debt maturity structure.