Fitch Affirms R.R. Donnelley’s BB+ Default Rating, Classifies Outlook as Stable

As with ratings on any business facing secular challenges, Fitch may continue to tighten the targeted leverage metric for a given rating category as business risk increases.

Fitch believes that debt reduction will need to be a primary use of RRD’s free cash flow (FCF) going forward in order to maintain its current ratings. Given the secular challenges facing the company, deleveraging will primarily be driven through debt level reductions. There is no tolerance in the ratings for material share buy backs and/or increases in the current dividend level.