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Peer Comparison: Global Advertising Agencies Think Digital As Market Shifts Toward New Media Apr 07
Standard & Poors, April 2007
Abstract
Standard & Poor's Ratings Services has compared the business and financial risk profiles of Japan-based Dentsu Inc. (AA-/Stable/A-1+), U.S.-based Omnicom Group Inc. (A-/Stable/A-2), U.K.-based WPP Group PLC (BBB+/Positive/A-2), France-based Publicis Groupe S.A. (BBB+/Negative/A-2), and U.S.-based Interpublic Group of Cos. Inc. (B/Positive/B-3), the five rated advertising agency holding companies. All five have been prime beneficiaries of three consecutive years of growth in advertising and marketing communications spend in both established and emerging markets, fueled by strong corporate profitability and consumer confidence. Despite these favorable industry conditions, there is considerable divergence in credit quality among the peers, with ratings ranging from 'AA-' to 'B' (see table 1). In considering the drivers behind the ratings, we look at the advertising industry outlook, discuss...
Companies mentioned in this report are: Omnicom Group Inc.,Dentsu Inc.,WPP 2008 Ltd.,Interpublic Group of Cos. Inc.,Publicis Groupe S.A.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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