S&P lowers Quebecor World ratings

Standard & Poor's said it lowered its ratings, including its long-term corporate credit rating, on Quebecor World Inc. by one notch to BB from BB+.

Along with the long-term corporate credit rating, the lowered ratings include senior unsecured debt to BB from BB+, subordinated debt to B+ from BB- and preferred stock to B from B+.

The outlook remains negative.

The ratings were lowered following Quebecor World's third-quarter earnings reported financial results that were weaker than S&P said it expected. Furthermore, S&P said it believes a recovery in the company's performance is not expected for some time, which will result in soft operating performance through 2006.

The ratings reflect the company's relatively aggressive financial profile and policy, weakness in earnings despite restructuring efforts and difficult industry conditions, S&P said. These factors are partially offset by Quebecor World's position as one of the world's largest printers, supported by its product and global diversity.

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