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MOODY'S CONSIDERS OMNICOM DEBT DOWNGRADE

Share Price Down to Lowest Levels in Four Years

By Published on . 0

NEW YORK (AdAge.com) -- Omnicom Group stock took another serious hit today after Moody's Investors Service announced it is reviewing the company's credit for a possible downgrade.

After hitting a five-year low of $36.50 earlier in the day, Omnicom's stock closed down 9.2% at $44.30 on the New York Stock Exchange.

"Moody's is concerned

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that revenue pressures caused by the cyclical slowdown has resulted in a mixed if not less than robust general advertising climate, and that the company is not compensating for the weakness sufficient to maintain credit strength and financial flexibility," the company said in a statement.

Moody's said it is reviewing Omnicom's senior unsecured debt, but not its short-term debt.

Omnicom issued a statement arguing the company has "ample liquidity to meet all foreseeable business and capital requirements," including an $850 convertible debt issue due in February 2003, and also has a $500 million credit line that would not be affected by a ratings change.

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