Moody's changes Omnicom view to stable, rates notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Omnicom Group, Inc.'s proposed $500 million senior unsecured notes due 2019 and changed its outlook to stable from negative.

Proceeds will be used to repay outstanding borrowing under Omnicom's revolving credit facility and commercial paper program.

Moody's said the offering improves Omnicom's liquidity position by providing additional capacity to fund potential putable note obligations and related deferred tax liabilities on the notes, any unwinding of the working capital deficit, acquisition earnouts or other potential cash needs.

The change in outlook reflects the enhancement to the company's liquidity profile, the agency said.

The stable outlook reflects expectation that Omnicom's debt-to-EBITDA ratio will be maintained at between 3x to 3.5x.

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