Fitch: Interpublic stays on watch

Fitch Ratings said The Interpublic Group of Cos. (IPG ) senior unsecured and multi-currency bank credit facility ratings of B+ remain on Rating Watch negative.

The company announced today that the chief financial officer has resigned and that the company has received additional waivers and amendments on its $700 million of credit facilities related to the late-filing covenant, again extending the required filing date for the 10-K from June 30 to Sept. 30 and the 10-Q for the first and second quarters of 2005 to Sept. 30, the agency said.

Fitch said it lowered IPG's ratings to B+ from BB+ and placed the ratings on Rating Watch negative on March 11, reflecting the increased levels of negative event risk at IPG, concerns about the reliability of the company's financial reporting and the ability of IPG's auditors to provide an unqualified opinion about the company's financial reports as well as IPG's earnings and cash flow outlook, given the company's weak organic growth trends and significant pressures on operating margins.

Fitch said it continues to be concerned that turnaround efforts initiated by new management in 2003 have not stabilized the company's operating performance, which has been weak relative to historical levels and competitors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.