Moody's lowers Workflow

Moody's Investors Service said it downgraded Workflow Management, Inc.'s ratings, while continuing the review for possible further downgrade.

The agency said that downgraded ratings include the corporate family rating to Caa1 from B2, probability of default rating to Caa1 from B2, senior secured first-lien revolving credit facility due 2010 to B2, LGD2, 27% from Ba3, LGD2, 29%, senior secured first-lien term loan facility due 2011 to B2, LGD2, 27% from Ba3, LGD2, 29% and senior secured second-lien term loan facility, due 2011 to Caa2, LGD5, 71%, from B3, LGD5, 72%.

Ratings remain under review for possible further downgrade.

The downgrades reflect Moody's continuing concern regarding Workflow's squeezed liquidity profile, the pressure posed by its tightening financial covenants and Moody's forecast that the company will be unable to make requisite term loan amortization payments.

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