S&P affirms Interpublic

Standard & Poor's said it affirmed its ratings on Interpublic Group of Cos. Inc., including the B long-term corporate credit rating and the B-3 short-term rating and removed the ratings from CreditWatch.

The outlook is positive.

The company had about $2.2 billion in debt outstanding as of Dec. 31. The ratings affirmation reflects S&P's recognition that the company's business has begun to stabilize following a period of client losses, operating shortfalls, business restructuring, accounting restatements and financial and reporting issues resulting from internal control weaknesses. The resolution of a significant number of control deficiencies is another major factor underpinning the ratings affirmation, the agency said.

The rating reflects the company's high leverage, negative discretionary cash flow, remaining internal control weaknesses, weak organic growth and poor profitability compared with peers.

These factors are partially offset by Interpublic's portfolio of advertising and communications services brands, its broad geographic and business diversity and strong cash balances, S&P said.

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