Last year, the Interpublic Group of Companies saw its credit rating reduced to one notch above "junk" by Standard & Poor's, when it published its third-quarter results.
Standard & Poor's has now said that it will decide shortly on the status of Interpublic's credit rating, but the picture does not look hopeful.
According to the credit agency: "There is no remaining cushion in the rating to withstand any negative news or disappointing earnings performance."
The reduction in its rating last time came as Sean Orr, the Interpublic chief financial officer, was forced to describe a 7.4% decline in revenues was "unacceptable".
Interpublic CEO John Dooner has assured investors that 2003 would bring brighter times for the agency group, but in the early weeks of the year this is looking far from true. "What I call 'the stupids' should be behind us as well," he said.
Earlier this week, the US financial watchdog the Securities & Exchange Commission said that it was now set to formally investigate the US advertising firm, which revealed $181.3m (拢115m) in restated earnings late last year. The SEC had already been informally investigating the firm.
Last week, it confirmed that it was looking at selling NFO WorldGroup, the market research unit it bought three years ago for $500m. Lord Hollick and WPP Group are both believed to have expressed interest. Interpublic is also thought to be preparing to sell off Los Angeles creative agency Suissa Miller.
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