Fitch affirms WPP; outlook negative

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

At the same time, the agency said it has affirmed the ratings of senior unsecured debt issued by WPP Finance (UK) at BBB.

The rating action follows WPP's Q109 trading update in which it stated that revenues, on an organic, constant currency basis, had declined 5.8% year-on-year, the agency added.

While detailed operating margin guidance was not given, the group acknowledged that it will be difficult to maintain operating margins in 2009 at the level achieved in 2008, Fitch said.

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