S&P lowers Quad/Graphics view to negative

Standard & Poor’s said it revised the outlook on Quad/Graphics Inc. to negative from stable.

The agency also said it affirmed the company’s BB- corporate credit rating.

The outlook revision follows Quad’s third-quarter results, which saw revenue decrease 6.5% year-over-year and adjusted EBITDA margin to 9.3% from 12.7%.

The negative outlook reflects an expectation that Quad’s operating performance will continue to deteriorate over the next six- to 12-months, S&P said.

The outlook also considers the decline in covenant headroom to 18.7% and the risk that increased price competition or structural headwinds could cause adjusted debt leverage to remain elevated, the agency said.

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