The ratings on U.K.-based communications services group WPP PLC reflect its leading positions in advertising, market research, and public relations services, combined with broad geographic, business, and client diversification. The ratings are further supported by the group's strong conversion of profits into discretionary cash flow. These strengths are tempered by the fact that the group's significant increase in leverage post its acquisition of Taylor Nelson Sofres (TNS; not rated) has coincided with a severe global economic downturn. Further constraining factors include the highly competitive nature of advertising and marketing services, WPP's reliance on key management and creative personnel, and ongoing pressure on the group's clients to optimize spending on marketing. WPP PLC is the new top holding company of the...
Companies mentioned in this report are: WPP PLC,WPP 2008 Ltd.
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