Fitch affirms Omnicom

Fitch Ratings said it affirmed Omnicom Group Inc.'s long-term issuer default rating and senior unsecured notes at A- and short-term issuer default rating at F2.

Ratings reflect the company's position as a leading global advertising agency holding company, its scalable cost structure to provide offset to cyclical revenue declines, its continued net new business wins and its historically stable credit profile, the agency said.

These strengths are balanced by the risk associated with the current cyclical declines in advertising expenditures, the negative impact of reductions in media buying activity on working capital flows, reductions in liquidity from expected puts of two sets of the company's convertible notes in the next year and lack of tangible assets, according to the agency.

Fitch said it estimates leverage of 1.4 times, as of March 31, down slightly from 1.5x in 2008, due to reduced debt resulting from the February convertible note repurchase financed by the revolver and the company's dedication of cash to reduce revolver borrowings.

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