Moody's assigns Baa2 to WPP program

Moody's Investors Service said it assigned a provisional Baa2 senior unsecured rating with a stable outlook to the €2.5 billion euro medium-term note program, under which WPP Finance 2013, WPP Finance SA or WPP Finance Deutschland GmbH may from time to time issue notes denominated in any currency agreed between the relevant issuer and each relevant dealer.

WPP Finance 2013, WPP Finance Deutschland GmbH, the new entities created on Oct. 17, as well as WPP Finance SA, are all indirectly wholly owned by WPP plc.

The notes that will be issued under the program will be unconditionally and irrevocably guaranteed by WPP plc, WPP 2005 Ltd. and WPP Jubilee Ltd. and therefore will rank pari-passu with all the existing debt of WPP and its rated subsidiaries.

The debt ratings and outlook for WPP plc and all its rated subsidiaries remain at Baa2 with a stable outlook.

Moody's said WPP's Baa2 long-term ratings continue to reflect the group's solid market position in advertising, communications and marketing services. WPP's ratings are supported by (a) the group's strong position in digital advertising services (35% of the first nine months of 2013 revenues); (b) its good geographic diversification with 30% of the first nine months of 2013 revenues achieved in markets other than North America and Western Europe, many of which show strong revenue growth; and (c) a visible element of flexibility in its cost base (variable staff cost to revenue of 6.7% in 2012).

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