Moody's affirms USI Holdings

Moody's Investors Service said it affirmed the ratings of USI Holdings Corp.'s corporate family rating of B3.

The outlook is stable, reflecting an expectation that USI will generate sufficient free cash flow to maintain its financial flexibility over the next several quarters, the agency said.

The ratings are based on the company's favorable market position and business diversification, offset by its elevated financial leverage and limited fixed charge coverage.

The company's credit strengths include its top-10 market position among U.S. insurance brokers, good balance of property and casualty insurance and employee benefits business, Moody's said, and its ability to cross-sell various products to strengthen client relationships.

These strengths are tempered by the company's high financial leverage and by the headwinds of soft pricing in commercial property and casualty insurance and a sluggish U.S. economy, the agency said.

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