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Moodyâ€™s Investors Services, the US credit rating agency, has downgraded Manpowerâ€™s (MAN:NYQ) debt rating to the brink of junk saying the staffing companyâ€™s profits will continue to weaken this year and will not return to pre-recession levels in the next two years, the Wall Street Journal writes.
"Manpower derives the majority of its revenues from Europe and we expect labour market conditions to remain difficult in key European markets into 2010" Moodyâ€™s Senior Vice-President, Lenny Aizenmann told WSJ.
Manpower is the worldâ€™s number three staffing agency by sales behind Adecco and Randstad. The agency has suffered from increased unemployment around the world but especially in Europe.
Moodyâ€™s downgraded Manpower to Baa3, the lowest investment grade rating. The move came after Manpower recently reported an 82% profit slump and a 36% drop in revenues.
Shares closed Thursday at $50.98, up 0.39%.