S&P assigns Interpublic floaters B

Standard & Poor's said it assigned a B rating to floating-rate notes due 2010 proposed by Interpublic Group of Cos. Inc. (B/Watch negative/B-3), to be issued in exchange for the same principal amount of its old floating-rate notes due 2008.

At the same time, S&P said it placed the rating on these notes on CreditWatch with negative implications.

The new notes differ from the old notes principally in the lower interest rate and an extension of the maturity date, the agency said, adding that the ratings on the outstanding debt of Interpublic remain on CreditWatch with negative implications, where they were placed on March 22, 2006, as a result of declines in Interpublic's core business and our reduced confidence in the company's prospects for cash flow generation.

"We expect to evaluate Interpublic's operating outlook and business strategies within the next several weeks in order to complete our CreditWatch review," said S&P credit analyst Deborah Kinzer.

"Rating downside is currently limited to one notch."

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