Aon ratings cut by S&P on concern about Spitzer probe

SAN FRANCISCO (CBS.MW) -- Aon Corp. (aoc) had its counterparty credit, senior debt and preferred stock ratings cut by Standard & Poor's Thursday on concern the insurance broker's earnings and cash flow will be hit by New York Attorney General Eliot Spitzer's investigation of the industry. The rating agency said it dropped Aon's counterparty credit rating to 'BBB+/A-2' from 'A-/A-2'; its senior debt rating to 'BBB+' from 'A-' and its preferred stock rating to 'BBB-' from 'BBB.' Recent announcements from insurers and brokers suspending contingent commissions will disrupt Aon's earnings and prevent the firm from improving its operating and financial profiles, S&P said, which added that all three ratings are on CreditWatch with negative implications.

Published on October 21, 2004