Moody's rates Workflow loans B2, B3

Moody's Investors Service said it has assigned a B2 rating to the proposed first-lien senior secured credit facilities of Workflow Management, Inc., a wholly-owned subsidiary of WF Holdings, Inc.

Ratings assigned include proposed $40 million first-lien senior secured revolving credit facility due 2010 at B2, proposed $300 million first-lien senior secured term loan facility due 2011 at B2, proposed $115 million second-lien senior secured term loan facility due 2012 at B3 and corporate family rating at B2.

The rating outlook is stable.

The ratings reflect Workflow's high financial leverage, vulnerability to business spending on print-related products and services, challenges of integrating the acquisition (Relizon Co.) of a larger company, competition faced in all operating segments and dependence upon affiliates of one company for $40 million in sales, Moody's said.

Ratings are supported by the recent improvement in Workflow's financial profile following an April 2004 recapitalization, strong customer relationships and low capital needs, Moody's said.

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