Moody's: Quad/Graphics loans Ba2, view to positive

Moody's Investors Service said it assigned a Ba2 (LGD 3, 47%) rating to Quad/Graphics, Inc.'s new senior secured credit facilities, comprised of an $850 million five-year revolving term loan, a $450 million five-year term loan A and a $200 million seven-year term loan B.

The agency also said it revised the company's outlook to positive from stable.

The company's corporate family rating of Ba2, probability of default rating of Ba2 and speculative-grade liquidity rating of SGL-2 are unchanged.

The transaction is credit positive as committed undrawn liquidity is augmented, Moody's said, and as the weighted average term-to-maturity of the company's debt is extended.

The refinance transaction is neutral to Quad's credit profile as outstanding debt remains unchanged, the agency added.

The ratings are based on moderate leverage, solid margins, good liquidity arrangements and expectations that free cash flow will improve with the successful integration of World Color, Moody's said.

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