S&P rates Aon notes BBB+

Standard & Poor's said it assigned a BBB+/A-2 counterparty credit rating to Aon plc, along with a BBB+ debt rating to Aon's proposed senior debt issue.

This is part of an offer whereby Aon is exchanging a portion of its outstanding 8.205% junior subordinated deferrable-interest debentures due January 2027 into 30-year senior notes due 2042. The new notes carry a guarantee from Aon Corp.

The ratings reflect the company's strong competitive position, arising from its well-established global presence in the risk-solutions business and supplemented by its global human-resources solutions segment, S&P said.

The company enhanced its market position in consulting and outsourcing with its October 2010 acquisition of Hewitt Associates Inc., the agency said.

Other rating strengths include its appropriately managed leverage and cash flows, S&P said, and credit metrics that are healthy for the rating and compare favorably with those of its global broker peers.

The company is susceptible to the depressed overall economic conditions and cyclical insurance pricing, which makes it difficult to achieve organic revenue growth and profitability, the agency said.

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