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

• Given the secular challenges facing the company’s business, Fitch does not expect any positive rating momentum in the near term.

• Increased share buyback activity or revenue declines in the low to mid single digits, whether due to secular/cyclical issues, would pressure the ratings.

Liquidity:

Fitch calculates RRD's FCF (after dividends) for the last 12 months ended March 31, 2012 at $455 million. Fitch expects FCF to be approximately $300 million in 2012. RRD's pension was $1 billion underfunded at the end of 2011. The company intends to contribute $215 million to its pension funds in 2012. The 2012 contribution is reflected in Fitch’s FCF expectations.