Moody's cuts ACCO

Moody's Investors Service said it lowered ACCO Brands Corp.'s corporate family and probability of default ratings to B3 from B1; its senior secured bank credit facilities to B1 from Ba2 and its senior subordinated notes to Caa2 from B3, following the company's sizable revenue and profit deterioration during the fourth quarter of 2008 and reduced expectations for performance during 2009.

Moreover, financial flexibility will diminish under its recently negotiated financial maintenance covenants, particularly by the fourth quarter of 2009, the agency said, adding that its negative outlook reflects the prospect of lower volumes going forward and the consequent pressure on operating leverage.

ACCO's speculative-grade liquidity rating is affirmed at SGL-3, Moody's said.

The agency said that ACCO's B3 rating is principally driven by the company's negative revenue trends in the Americas and overseas as well as its diminishing profitability and free cash flow.

© 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.