Fitch affirms Willis

Fitch Ratings said it affirmed the BBB- issuer default ratings of Willis North America Inc., Willis Group Holdings plc and Trinity Acquisition Ltd.

The outlook is stable.

The affirmations reflect expectation that projected ranges for three key credit ratios will remain at levels that are manageable for an insurance broker, the agency said, with a debt-to-EBITDA ratio in 2012 returning to levels at or close to the 2.5 times reported for full year 2010.

Fitch said that non-recurring expenses related to Willis' most recent operational review caused the company's reported debt-to-EBITDA ratio for 2011 to climb to about 3.3x.

The ratings reflect the performance of the company's insurance brokerage operations, which has compared favorably its closest competitors for several years, the agency said.

Willis' ratings also consider the company's large intangible asset position, which currently comprise roughly 137% of Willis' common equity, the agency said, and Willis has a solid record of integrating acquisitions, which somewhat mitigates risk associated with goodwill writedowns.

The ratings also reflect that the company faces contingent risks as an occasional target of litigation, Fitch said.

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