Fitch Revises R.R. Donnelley’s Outlook from Stable to Negative

Fitch notes that RRD affirmed its guidance of approximately $300 million in free cash flow (after dividends). Fitch believes this is achievable. While Fitch now expects revenues to be down in the low single digits, Fitch expects EBITDA to remain unchanged relative to 2011 EBITDA of $1.2 billion.

As of June 30, 2012, RRD had total debt of $3.8 billion. Fitch calculates unadjusted gross leverage (without adding back restructuring charges) at 3.2 times (x). The ratings reflect the company’s intention to reduce absolute levels of debt.