Standard & Poor's Puts Cenveo’s ‘B’ Rating On Watch Negative
Standard & Poor’s Ratings Services placed all ratings for Cenveo Inc., including the ‘B’ corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects Standard & Poor’s expectation that the company may not have enough liquidity to pay down its 7.875-percent senior notes by mid-2013.
“Over the next year, we expect the company’s leverage to remain high and liquidity to remain limited, with significant debt maturities in 2013. For these reasons, we consider Cenveo’s financial profile ‘highly leveraged.’ We view the company’s business risk profile as ‘weak’ because of Cenveo’s participation in the highly competitive and cyclical printing markets.