Video- Moody's downgraded Interpublic Group of Companies Inc.'s senior unsecured debt ratings to Baa3 from Baa1 and subordinated debt rating to Ba1 from Baa2. The company's senior unsecured and subordinated shelf registration ratings were also downgraded accordingly. In addition, the company's short-term rating was lowered to Prime-3 from Prime-2.
The rating agency said the action concludes the review for downgrade initiated on August 7. According to Moody's, "the rating action resulted from revenue, EBITDA and gross free cashflow (defined as EBITDA less taxes, interest, capex, working capital, and cash earn-out payments) shortfalls that are significantly larger than Moody's anticipated for 2002 and for 2003."
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