Interpublic Downgraded by Standard and Poor's
NEW YORK, Dec 6 - Standard & Poor's Ratings Services said today that it lowered its long-term corporate credit rating to triple-'B'-minus from triple-'B' on The Interpublic Group of Cos. Inc. (IPG).
"The rating action is driven by liquidity concerns with respect to Interpublic's zero coupon convertible notes issue that is put-able to the company, for cash, on Dec. 14, 2003, at the accreted value of $587 million, and the May 2003 maturity date of the company's $500 million revolving credit facility," said Standard & Poor's credit analyst Alyse Michaelson. Ms. Michaelson added that, "Consistently weaker-than-expected financial performance that is restraining the company's prospects for generating meaningful discretionary cash flow and reducing debt is also a key concern."
Well, whatever that means it sure doesn't sound good!