S&P: Omnicom now stable

Standard & Poor's said it revised its outlook on Omnicom Group Inc.'s senior unsecured note issues to stable from negative, reflecting that the structural subordination risks to these creditors have been alleviated.

At the same time, the A- long-term and A-2 short-term corporate credit ratings on Omnicom were affirmed. Ratings affirmed include Omnicom Group Inc.'s €152.45 million 5.2% notes due 2005 at A-, convertible notes due 2031 at A-, convertible notes due 2032 at A-, and convertible notes due 2033 at A-.

The outlook is stable.

S&P said the rating on Omnicom reflects the company's strong position among the top three worldwide advertising agency holding companies, good geographic and business diversity, and sustained discretionary cash flow, notwithstanding the muted recovery in the advertising and marketing services environment.

These factors are partially offset by acquisition activity that contributed to higher debt levels and potentially sizeable short-term debt maturities.

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