Rating agencies set a negative outlook while leaving Marsh & McLennan's credit rating unchanged after news of its $3.9 billion sale of Putnam to Great-West Lifeco Inc. of Canada, but still questioned the company's future earnings.

Moody's Investors Service, Standard & Poor's and Fitch Ratings affirmed their rating of the New York-based professional service firm, the parent company of insurance broker Marsh. All three placed a negative outlook on the firm.

"The ratings on MMC are based on the company's strong, though diminished, competitive position, led by Marsh," said S&P.

"Fitch believes that the sale of Putnam will free MMC's management from the distraction of running an underperforming, ancillary business that shares little synergy with remaining businesses," Fitch said.

"MMC will protect its financial flexibility through the sale process and through the subsequent allocation of proceeds," said Moody's.

The negative outlook reflected the feeling among the three that MMC still needs to improve earnings, and though improving, the company still shows some weakness.

In an analyst's note, David Small with Bear Stearns said the feeling is that the dilution to earnings will be greater than the 5 cents a share management said it would be, but a share repurchase plan should make the stock more attractive.

"The open question remains how much management wants to reinvest in the business via acquisitions vs. returning capital to shareholders," Mr. Small said.

Fitch and S&P rated MMC's debt at "triple-B." Moody's gave the company a rating of "Baa2."

All three also affirmed the rating of Great-West Lifeco. The company is a subsidiary of Power Financial Corp. of Canada.

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MMC Credit Rating Affirmed, But Doubts Linger

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