S&P lowers Valassis Communications

Standard & Poor's said it lowered its corporate credit and senior unsecured ratings on Valassis Communications Inc. to BB from BB+ and left the ratings on CreditWatch with negative implications.

S&P noted that the downgrade reflects a meaningfully more-aggressive expected long-term financial policy at Valassis following the company's announcement it has entered into a definitive agreement to acquire the common stock of ADVO Inc. for $37.00 per share, or $1.2 billion, plus the assumption of $125 million in debt.

The downgrade and continued CreditWatch listing reflect the view that BB is the highest rating warranted following the announcement, but that ratings could still be lowered further as we evaluate the transaction, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.