Publicis Groupe SA thrown on CreditWatch
Standard & Poor’s Ratings Services put its credit ratings on Publicis Groupe SA (PUBGY) on watch for downgrade, citing the French-based global advertising agency’s heavy exposure to General Motor Corp.’s (GMGMQ) bankruptcy filing.
We were the first to report on the bankruptcy filing will cause severe problems for the advertising agency to the tune of $150,000,000.
The fact that GM is now owned by the US Federal Government and now subjected to politics will most likely lead to a review with the “favored” advertising agency being US based. In practice that is illegal, in reality a few dozen calls to a few dozen senators will do the trick.
In my opinion, rule out anything with UK / Ireland based WPP group plc or France based Publicis ever seeing a dollar of the Government Motors advertising budget.
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