S&P affirms Workflow

Standard & Poor's said it affirmed its ratings on Workflow Management Inc., including the CC corporate credit rating.

The outlook remains negative.

The agency said the affirmation recognizes the company's payment of scheduled interest due on its second-lien term loan. On Jan. 12, Workflow Management executed forbearance agreements with its first-and second-lien lenders that provide for waivers of some events of default and preclude the company from making cash interest payments to its second-lien lenders, but first-lien lenders later executed a subsequent amendment allowing for the payment of cash interest due to second-lien lenders.

The negative outlook reflects limited near-term relief from the forbearance agreements with the company's lenders, Fitch said. Although the agreements prohibit and waive scheduled cash payments on the company's second-lien term loan, a missed payment is a default under the agency's criteria even if consented to by lenders.

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