Moody's: Sheridan still stable

Moody's Investors Service said that the outlook of the Sheridan Group, Inc. remains stable at the B2 corporate family rating level.

The stable outlook assumes the company extends its maturity profile, and inability to do so in a timely manner could result in an outlook revision, the agency noted.

According to Moody's, Sheridan's revolver (no borrowings as of March 31) matures in March 2011 and its bonds - about $143 million outstanding as of March 31 - in August 2011, posing refinancing risk.

The company's recent debt reduction and positive free cash flow improve its refinancing prospects, in Moody's opinion. However, Moody's considers leverage of 3.7 times debt-to-EBITDA high in light of the industry's weak growth prospects.

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