S&P cuts American Reprographics

Standard & Poor's said it lowered the corporate credit rating on American Reprographics Co. LLC to BB- from BB and removed ratings from CreditWatch, where they were placed with negative implications Feb. 25.

The outlook is negative.

"The rating downgrade reflects our expectation that the severe decline in domestic construction spending and its impact on American Reprographics' revenue and profitability will be more significant than we previously anticipated," S&P analyst Liz Fairbanks said in a statement.

The BB- rating incorporates assumptions that revenue could decline by about 25% in 2009 and in the mid-single-digit percentage area in 2010, the agency said.

Despite these declines, the company will gain market share and further strengthen its market position throughout this cycle as smaller competitors with less resources experience exit the market, S&P said.

© 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.