S&P may lower USI Holdings

Standard & Poor's said it placed its BB- counterparty credit and bank loan ratings on USI Holdings Corp. on CreditWatch with negative implications.

This rating action follows the company's announcement on Friday that it expects to receive a subpoena from the New York State attorney general regarding the payment of contingent commissions related matters that has led to the decision by various insurance companies and insurance brokers to end certain compensation agreements. The subpoena from the New York attorney general follows a similar action by the Connecticut attorney general and ongoing private litigation in which the company is a named co-defendant along with the other top 10 domestic insurance brokers in addition to major commercial lines insurers. Furthermore, the company has indicated that it does not expect contingent commissions to continue in their current form.

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