Moody's may cut Workflow

Moody's Investors Service said it placed its ratings for Workflow Management, Inc. under review for possible downgrade.

The agency said that details of the rating action are as follows: ratings placed under review for possible downgrade are the senior secured first-lien revolving credit facility due 2010, senior secured first-lien term loan facility, due 2011, senior secured second-lien term loan facility, due 2011, corporate family rating and probability of default rating.

According to the agency, the review for possible downgrade reflects the company's underperformance relative to expectations and Moody's heightened concerns regarding Workflow's squeezed liquidity profile and the likelihood that it will fail to meet the materially stepped-down financial maintenance covenants under its senior secured credit agreement, coupled with the uncertainty related to management's ability to waive and/or amend the terms of this facility given tight credit market conditions and the ensuing elevated risk of default in the absence thereof.

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