Fitch rates Aon notes BBB+

Fitch Ratings said it expects to assign a BBB+ rating to the $500 million senior notes issuance planned by Aon Corp.

The new rating is based on Aon's existing BBB+ issuer default rating.

The net proceeds from this new senior debt issuance will refinance a portion of Aon's short-term bank debt related to its acquisition financing of Hewitt Associates, Inc. in 2010, Fitch said.

The agency also said it affirmed Aon's issuer default rating and existing senior debt ratings at BBB+ and its commercial paper rating at F2.

The outlook is stable.

The affirmation reflects Aon's strong balance sheet and cash flow generation, good financial flexibility and a belief that Aon's financial leverage will remain within a reasonable range for the rating category, the agency said.

Partially offsetting these favorable factors is the fact that Aon's earnings have been pressured by ongoing restructuring expenses, a soft insurance pricing cycle and the global economic downturn, Fitch said.

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