Moody's rates Aon notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to $500 million of five-year senior notes being issued by Aon Corp.

The proceeds will be used to refinance a portion of Aon's $950 million bank term loan that matures in October 2013, thereby extending the company's debt maturity profile, Moody's said.

The bank loan was arranged to help fund the acquisition of Hewitt Associates, Inc. in October 2010.

The outlook is stable.

The ratings reflect its strong market presence and its expertise in providing risk and human resource solutions to middle-market, national and global clients, Moody's said.

The ratings also reflect the firm's broad geographic and product diversification, the agency said.

These strengths are tempered by Aon's moderate, but improving operating margins, Moody's added.

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