S&P lifts Interpublic

Standard & Poor's said it raised the corporate credit rating on Interpublic Group of Cos. Inc. to BB from B+ and removed the rating from CreditWatch, where it was placed with positive implications April 29.

The outlook is stable.

The agency assigned the company's amended and extended $650 million revolving credit facility due 2013 a rating of BB and a recovery rating of 3.

"The ratings upgrade reflects improving operating results, as well as steps that IPG has taken over the past 12 to 18 months to reduce debt and strengthen liquidity," S&P analyst Michael Altberg said in a statement.

The BB rating reflects IPG's continued near-term revenue uncertainty due to the weak economy, the task of rebuilding the EBITDA margin amid client and competitive pressures on agency compensation, ongoing weakness in some key industries and its relatively low EBITDA margin and cash generation, Altberg said.

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