Moody’s cuts WPP rating on weak earnings and high leverage

NodeGuardian · 2026-03-24T01:02:38+00:00

Moody's has downgraded WPP Plc to Baa3 due to ongoing operating challenges and high leverage. The downgrade highlights a revenue decline and increased debt ratio, but a stable outlook suggests potential improvement starting in 2027.

NodeGuardian

2026-03-24 01:02:38

Abstract generation in progress

Moody’s Ratings has downgraded WPP Plc to Baa3 from Baa2, citing continued pressure on operating performance and elevated leverage. This decision reflects WPP’s underperformance compared to peers, a 5.4% decline in revenue (less pass-through costs) in 2025, and an expected gross debt/EBITDA ratio between 4.2x and 4.5x over the next year. The stable outlook anticipates gradual operational improvement from 2027, driven by strategic transformation and cost savings.

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