Fitch Rates Aon's Euro Commercial Paper Program 'F2'

  Fitch Rates Aon's Euro Commercial Paper Program 'F2'

Business Wire

CHICAGO -- May 9, 2013

Fitch Ratings has assigned an 'F2' rating to Aon plc's (Aon) new euro 650
million unsecured commercial paper program. Fitch has also assigned a
short-term Issuer Default Rating (IDR) of 'F2' to Aon. The Rating Outlook is
Stable. A complete list of ratings follows at the end of this release.

RATING DRIVERS

The new commercial paper rating is equivalent to Fitch's rating on Aon
Corporation's (Aon Corp.) existing U.S. commercial paper program. The new
short-term notes will be irrevocably guaranteed by Aon Corp., Aon's former
parent company, and these ratings are therefore based on Aon Corp.'s existing
'F2' short-term IDR. Aon's existing euro credit facility of the same amount
provides 100% commercial paper backup.

Aon's ratings continue to reflect its strong competitive position, balance
sheet and cash flow generation, very good financial flexibility, and financial
leverage that are within guidelines for the rating category.

Fitch views the program favorably as the new notes will likely be issued at a
more attractive rate than Aon's current short-term financing under its euro
credit facility, resulting in an improved liquidity profile. Fitch expects
that commercial paper issued under this program in the near term will not
materially impact Aon's financial leverage since it will either refinance
current debt outstanding or in the ordinary course of business replacing the
usage of its euro credit facility. Financial leverage, as measured by
debt-to-EBITDA, was roughly 1.8x at year-end 2012.

RATING SENSITIVITIES

The key rating triggers that could result in an upgrade include a sustained
strong improvement in operating performance on an absolute basis and relative
to peers with operating EBIT consistently over $1 billion and an operating
EBIT margin near 15%, a run-rate debt-to-EBITDA ratio less than 1.5x, and
interest coverage as measured by an EBITDA-to-interest ratio more than 12x.

The key rating triggers that could result in a downgrade include a sustained
increase in the debt-to-EBITDA ratio to more than 2.25x, a deterioration of
the company's average EBITDA-to-interest expense ratio to lower-single digits,
and any impairment to goodwill that would materially impact the balance sheet
and related ratios.

Fitch has assigned the following ratings:

Aon plc

--Short-term IDR 'F2';

--Commercial paper 'F2'.

Fitch currently rates Aon and its subsidiaries as follows:

Aon plc

--IDR 'BBB+';

--$256 million 4.25% senior debt due Dec. 12, 2042 'BBB+'.

Aon Corporation

--IDR 'BBB+';

--$600 million 3.5% senior debt due Sept. 30, 2015 'BBB+';

--$500 million 3.125% senior debt due May 27, 2016 'BBB+';

--$600 million 5% senior debt due Sept. 30, 2020 'BBB+';

--$521 million 8.205% junior subordinated deferrable interest debentures due
Jan. 1, 2027 'BBB-';

--$300 million 6.25% senior debt due Sept. 30, 2040 'BBB+';

--Short-term IDR 'F2';

--Commercial paper 'F2'.

Aon Services Luxembourg & Co S.C.A.

--IDR 'BBB+';

--Eur500 million 6.25% senior debt due July 1, 2014 'BBB+'.

The Rating Outlook is Stable.

Additional information is available on Fitch's web site at
'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Insurance Broker Industry Sector Credit Factors' Special Report (May
4, 2012);

--'Corporate Rating Methodology' (Aug. 8, 2012);

--'Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit
Analysis' (Dec. 13, 2012).

Applicable Criteria and Related Research

U.S. Insurance Broker Industry Sector Credit Factors

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=677409

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit
Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696670

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=790799

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ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst
Gretchen Roetzer, +1 312-606-2327
Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Gregory Dickerson, +1 212-908-0220
Director
or
Committee Chairperson
Donald F. Thorpe, CPA, CFA, +1 312-606-2353
Senior Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com
 
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