Fitch rates Interpublic notes BBB

Fitch Ratings said it assigned a BBB rating to Interpublic Group of Cos.' proposed senior notes due 2022.

The company has an issuer default rating of BBB.

Proceeds will be used to fund the redemption of its $400 million 4.25% convertible notes due 2023 and the purchases of the company's common stock, if conversions of the notes result in an total redemption price less than the net proceeds of the issuance. The company will redeem the convertible notes at par.

The company's liquidity is solid, supported by a cash balance of $2.3 billion, according to Fitch.

The ratings reflect expectation that Interpublic will manage unadjusted gross leverage at a level below 2.5 times, the agency noted.

The ratings also the company's position in the industry as one of the largest global advertising holding companies, its diverse client base and the company's ample liquidity, the agency said.

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