Moody's rates Quad/Graphics loan Ba2

Moody's Investors Service said it affirmed Quad/Graphics, Inc.'s Ba3 corporate family rating, Ba3-PD probability of default rating, Ba2 senior secured credit facility rating, B2 senior unsecured rating and SGL-1 speculative grade liquidity rating.

The agency also said it rated the company's proposed bank credit facility at Ba2.

The outlook is unchanged at negative.

Quad launched a deal in advance of its proposed acquisition of LSC Communications, Inc., Moody's said.

The acquisition transaction was announced in October and the companies anticipate a mid-2019 completion, the agency said.

The ratings reflect a belief that the LSC acquisition is strategically appropriate, Moody's said.

Until the acquisition closes, the agency said it expects Quad's leverage to remain at less than 3x.

The outlook continues to be negative because of risks related to the company's ability to internalize sufficient scale and operational flexibility benefits to offset credit quality dilution stemming from LSC's higher cost, more highly levered business, the agency 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.