Fitch affirms WPP

Fitch Ratings said it affirmed WPP Group plc's issuer default rating at BBB+ with stable outlook, following an announced plan to acquire 24/7 Real Media for $649 million, primarily in cash.

Fitch also said it affirmed the debt issued by WPP, WPP 2005 Ltd., WPP Finance (UK), WPP Finance (USA) Corp., WPP Group US Finance Corp. and WPP Finance Co. Ltd. at senior unsecured BBB+.

The group said the acquisition, slated for completion in July 2007, would increase average net debt-to-EBITDA in 2007 and 2008 by about 0.3 above previous expectations, the agency said.

Fitch said it views global advertising holding companies, such as WPP, as among the best placed media companies to weather the structural changes occurring in the media industry. This, combined with WPP's strong and improving operating performance, geographical and operational diversity, allows the group to tolerate the higher leverage within its BBB+ rating, the agency said.

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