S&P cuts Workflow Management to CCC

Standard & Poor's said it lowered Workflow Management Inc.'s corporate credit rating to CCC from B-. The outlook is developing.

The downgrade reflects concern regarding Workflow's near-term liquidity position, given the tight cushion against its financial covenants as amended in March of this year and the company's burdensome amortization payments on its first-lien term loan, according to the agency.

The CCC rating reflects significant debt service requirements, recent operating challenges, near-term concerns about the company's liquidity position and the susceptibility of the printing industry to the current economic slowdown, S&P said.

The developing rating outlook depends on whether the merger with Enterprise is completed, the agency noted.

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