Moody’s revises ACCO outlook to negative

Moody’s Investors Service said it changed its outlook for ACCO Brands Corp. to negative from stable.

“The change in outlook to negative from stable accounts for increased risk that ACCO's leverage could remain elevated because of a decline in sales volumes and the EBITDA margin in an increasingly challenged economic environment. Risks include the potential for lower demand for office and school supplies, challenges implementing additional pricing actions amid weaker demand, continued cost inflation, or if the company is unable to reaccelerate growth in the gaming business and expand in international markets,” Moody’s said in a press release.

Concurrently, the agency affirmed ACCO’s Ba3 corporate family rating, Ba3-PD probability of default rating and its senior unsecured notes due 2029 at B1. The SGL-2 speculative grade liquidity rating is unchanged.

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