Where Credit Is Due

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In another bullish indicator of market turnaround, Fitch Ratings expects the ad industry to enjoy a more stable credit environment this year. After issuing company downgrades during the last few years, Fitch sees a return to better times: Revenue growth, coupled with leaner cost structures, should strengthen cash flow, which can be used to fund acquisitions and share repurchases, thus reducing the need to increase debt levels.

“As a result, credit measures are expected to strengthen for the [industry’s global holding companies] in 2004, lending stability to current rating levels,” said Fitch analyst Karen Lynch Ghaffari, who wrote a recent report on the industry.

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