NEW YORK (Bloomberg) ? Marsh & McLennan Cos., the insurance brokerage accused by New York Attorney General Eliot Spitzer of colluding with insurers to win more fees, had its credit rating cut one level to BBB by Standard & Poor's.

S&P lowered the senior debt rating on New York-based Marsh from BBB+ because cash flows in 2005 and 2006 may be lower than the rating company previously expected.

The expense savings from 3,000 job cuts announced two weeks ago will take effect more slowly than S&P expected, analyst Steven Ader said in an interview, declining to be more specific. S&P said it may lower the rating further.

Marsh & McLennan's rating is now two levels from junk, or below investment grade. Moody's Investors Service has the company at Baa2, the equivalent to S&P's BBB, and said today it is still reviewing whether to cut the rating further.

Spitzer sued Marsh on October. 14, accusing it of fabricating bids and steering clients to insurers that paid it the highest fees.

The broker has since banned the disputed fees ? arrangements that contributed $845 million to revenue last year ? and cut 5 percent of its staff. The job cuts and other expense savings are slated to cut $400 million in annual costs.

S&P lowered Marsh's rating three levels from A+ to BBB+ on October 21, before the job cuts were announced. The company's shares have plunged 39 percent to $28.06 since the October 14 suit.