S&P lowers WPP

Standard & Poor's said it lowered its long-term corporate credit and senior unsecured debt ratings on WPP Group plc and related entities to BBB, following the group's successful acquisition of over 95% of market research company Taylor Nelson Sofres (not rated) for a total consideration of about £1.4 billion.

The short-term ratings are affirmed at A-2, the agency said.

The outlook is stable.

At the same time, the agency said it removed the long-term ratings from Creditwatch with negative implications, where they were placed on May 7.

The downgrade mainly reflects the significant increase in financial debt and leverage resulting from WPP's acquisition of Taylor that will not be commensurate with BBB+ ratings once the funding for the acquisition is completed by the end of 2008, the agency added/

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