Fitch revises WPP to negative

Fitch Ratings said it revised the outlook on WPP plc's long-term issuer default rating to negative from stable and affirmed the issuer default rating and unsecured rating at BBB+.

Fitch said the outlook revision reflects pressures building both across the industry and at WPP, a period of uncertainty as the company seeks to find a replacement for recently departed longtime CEO Martin Sorrell, and a view that financial leverage is likely to remain elevated for an extended period.

Secular pressures include disintermediation from direct online advertising platforms, blurring of competitive boundaries with the large business consultancies, efficiency pressures on consumer branding and zero-based budgeting, the agency noted.

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