Moody's ups ACCO outlook to positive

Moody's Investors Service said it changed ACCO Brands Corp.'s outlook to positive from negative primarily as a result of a significant increase in financial flexibility as a consequence of ACCO's proposed re-financing and anticipated improvement in operating results.

The positive outlook incorporates the transformation of ACCO's balance sheet following the refinancing of senior secured bank debt with the issuance of $425 million of senior secured notes and a $175 million ABL revolving credit facility alleviating the pressures of covenant compliance and an upcoming maturity, the agency said.

The outlook also considers the sizable restructuring efforts the company has undergone in order to address lower demand, the agency added.

In addition, Moody's said it affirmed the ACCO's existing ratings, including the B3 corporate family and probability of default ratings, the Caa2 senior subordinated note rating and assigned a B2 rating to the proposed senior secured notes.

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