Moody's ups WPP to positive

Moody's Investors Service said that it changed the outlook for WPP plc (senior rating at Baa3) and its subsidiaries to positive from stable.

The change in outlook is based on the expectation that WPP will improve its leverage levels visibly from the level of just above 3.5 times reached at the 2010 year-end, even if revenue growth rates slow down from the 6.7% achieved in Q1 2011 as comparables become more challenging through 2011 and growth remains at more pedestrian levels in some geographies, the agency said.

Although Moody's expects WPP to resume shareholder-friendly activities and acquisitions after a period of restraint, the agency expects those to remain measured in the near-term, the agency added.

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