S&P raises credit outlook for Interpublic, citing cost controls and improving revenue
By APTuesday, March 2, 2010
S&P raises credit outlook for Interpublic
NEW YORK — Standard & Poor’s raised its credit outlook for Interpublic Group of Companies Inc. on Tuesday, saying the advertising and marketing conglomerate has effectively cut costs and is starting to see revenue recover.
S&P now has a “Positive” outlook on Interpublic’s “B+” rating, up from “Stable.”
The economic downturn shrank advertising budgets last year, hurting Interpublic and other companies that rely on the flow of ad dollars.
S&P expects spending on advertising and marketing services will remain below normal levels through the first half of the year, then start to pick up. The agency said Interpublic may be able to meet its goal of returning to 2008-level profits this year even if revenue stays relatively flat.
Interpublic shares fell 7 cents to $8.19 in afternoon trading.
