News that credit ratings firm Moody's was to review its rating with a view to a possible downgrade wiped out as much as 21% of Omnicom's share price, before rallying following a statement from the company. Shares closed at $44.30, down 9.24% on the previous day's close.
Moody's instigated the review due to what it called "the weakened and somewhat uncertain advertising market, combined with the company's continued use of cash and debt to finance acqusitions and stock repurchases". It has purchased $368m (拢241m) of its own stock during the first quarter of the year.
Omnicom responded to the debt review by saying that it had "ample liquidity to meet all foreseeable business and capital requirements".
The world's largest advertising group has seen almost 50% of the value of its shares disappear in recent weeks, following a report in the Wall Street Journal that questioned its accounting practices. The article came on the heels of the resignation of Robert Callander, chairman of the Omnicom board's audit committee whose resignation sparked the story.
John Wren, president and chief executive of Omnicom, has publicly stated that the company has "no skeletons in the closet". However this reassurance has not stopped Omnicom, Wren and fellow executives becoming the subject of numerous class action lawsuits, brought on behalf of shareholders who invested in Omnicom over the past two years.
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