S&P cuts Quad/Graphics

Standard & Poor's said it lowered its ratings on Quad/Graphics Inc., including the corporate credit rating, to BB from BB+.

The agency said this action follows Quad's plan to pay a $94 million special dividend and 30% of discretionary cash flow to shareholders in December 2012.

Additionally, S&P said the U.S. Bankruptcy Court approved Quad's proposed purchase of Vertis Holdings Inc. assets for $258 million

"The downgrade reflects our view that Quad's business risk profile will be weakened with the acquisition of Vertis and that leverage will increase as a result of the acquisition, the resulting integration costs and the payment of the special dividend," said S&P credit analyst Naveen Sarma in a news release.

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