S&P Downgrades RR Donnelley Outlook

CHICAGO—Standard & Poor's (S&P) Ratings Services has revised its outlook on RR Donnelley (RRD) to negative from stable. The outlook revision reflects S&P's expectation of weak economic conditions, negative trends in print media and the risk of intensifying industry pricing pressure.

Although leverage is currently high for the rating, the "BB+" long-term corporate credit rating on RRD reflects the company's cash flow generation and the potential that the company could reduce leverage to the mid-3x area, according to S&P. It regards the business risk profile as satisfactory, based on RRD's market position and efficiencies associated with its critical mass.