S&P: Publicis view stable

Standard & Poor's said it revised the outlook on Publicis Groupe SA to stable from negative, following solid 2007 results and a return to a leverage level in line with the ratings.

The agency affirmed the BBB+ long-term and A-2 short-term corporate credit ratings.

The outlook revision reflects Publicis' significant deleveraging at year-end 2007, 11 months after acquiring Digitas Inc. for $1.3 billion in cash, the agency said. The group's adjusted debt-to-EBITDA ratio was 2.5 times at the end of 2007, versus 2.8 times at year-end 2006, pro forma for the acquisition.

S&P said that although the international macroeconomic environment is weakening, the group's global reach, moderate financial policy and strong discretionary cash flow generation could allow it to maintain a sound capital structure.

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