Moody's downgrades WPP

Moody's Investors Service said it downgraded the senior unsecured ratings for WPP plc to Baa3 from Baa2 and the short-term rating to Prime-3 from Prime-2.

The change reflects weakening operating performance related to the global advertising downturn and elevated debt levels from the mainly debt-financed TNS acquisition, according to the agency.

The issuer's adjusted net debt-to-EBITDAR ratio, which was 3.8x, adjusted for unusual severance cost, for the 12 months ended June 30 is expected to deteriorate further in the second half, the agency said.

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