Moody's downgrades Output Services

Moody's Investors Service said it downgraded the ratings on Output Services Group, Inc., including the company's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD, along with the ratings on the company's senior secured first- and second-lien debt to B2 from B1 and to Caa2 from Caa1, respectively.

The ratings also were placed on review for further downgrade.

The company's operating performance has lagged behind earlier expectations due to delays in the realization of recent strong business wins, Moody's said, and this has been compounded by a more aggressive debt-funded acquisition path than previously anticipated.

The downgrades also acknowledge the uncertainty of Output Services's future performance given the pace of acquisitions and the limited operating history with these acquired businesses and the ability to adequately service its heavy and growing debt burden, the agency said.

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