Moody’s raises Deluxe CFR to Ba1

Moody's Investors Service said it upgraded Deluxe Corp.’s corporate family rating to Ba1 from Ba2.

The senior notes maturing in 2019 and 2020 were affirmed at Ba2 and the outlook was changed to stable from positive.

Moody’s said the upgrade reflects the reduction in leverage to 1.5 times as of the second quarter 2014 pro-forma for the October 2014 note repayment at maturity with $125 million in cash and a $135 million draw on its revolver. Also included in the rating, is the conservative financial policy of management, stability of operations (despite the secular pressure on Deluxe's check business) that allow for good EBITDA margins and very strong free cash flow, the agency said.

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