S&P affirms Merrill

Standard & Poor's said it affirmed its ratings on Merrill Corp., including the B+ corporate credit rating.

In addition, ratings were removed from CreditWatch with positive implications where they were placed Feb. 14, reflecting Merrill's June 14 filing of an amended registration statement, which would indicate that the company's proposed IPO of common stock is not likely within the next 45 days, proceeds of which were expected to be partly used for debt repayment.

S&P said that ratings on Merrill reflect high debt levels and the company's still-significant exposure to the financial printing segment, which is subject to the volatility of the capital markets and prospects for declining volumes.

These factors are partially offset by Merrill's focus on diversification, most notably through its legal solutions and marketing communications solutions segments and adequate cash flow generation, the agency added.

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