Moody's: Aon up to stable

Moody's Investors Service said it affirmed the Baa2 senior debt of Aon Corp. and changed the outlook to stable from negative.

Moody's said the change in rating outlook was prompted by the company's announcement that it had reached an agreement with five agencies in three states to settle investigations relating to contingent commissions and other business practices.

As a result of the agreement, Aon has agreed to establish a $190 million fund to compensate its clients, who will be paid over a three-year period, and has neither admitted nor denied the allegations in the complaints.

Moody's said it views the level of Aon's restitution to its clients as manageable given the company's overall financial flexibility and reduced financial leverage profile.

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