Moody's drops HMSC

Moody's Investors Service said it has lowered the corporate family rating of HMSC Corp., the holding company for the Swett & Crawford Group, to B3 from B2, based on the company's decline in revenues and EBITDA over the past year and the related weakening of financial leverage and coverage metrics.

Moody's said it has also lowered the ratings on the HMSC's first-lien credit facilities to B3 from B2 and its second-lien credit facility to Caa1 from B3.

The outlook is stable.

Moody's noted that the decline in Swett & Crawford's business volume has been driven mainly by the soft market for property & casualty insurance, exacerbated by the weak U.S. economy - factors that have challenged several insurance brokers over the past year or two.

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