Free Trial

WPP Affirmed By Moody’s At Baa2[S]; Spreads Closed Wider In Line With Market

COMMUNICATIONS
  • Yesterday’s affirmation reflects scale/position as one of the largest ad agencies with a committed financial policy (albeit tilted towards growth/profitability) weighed against tech risk and the cyclical nature of advertising.
  • Seen weakly within its position with Moody’s-adj 2023 gross debt/EBITDA at 3.4x against thresholds of sustainably above/below 3.25x/2.75x. Upgrade unlikely in next 12-18m.
  • Moody’s note an excellent liquidity position with adjusted FCF of GBP 325mn in 2024 and GBP 500mn in 2025, GBP 2.2bn in cash and cash equivalents and USD 2.5bn in covenant-free RCFs.
  • Most lines closed 4-5bps wider on the day with their EUR 28s underperforming at +9bp though we note the broader risk-off tone during the session with the €IG index +4bp. Spreads muted this morning.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.