S&P downgrades Deluxe

S&P said it downgraded Deluxe Corp.’s issuer rating to B from B+ and the rating on its senior unsecured notes to CCC+ from B-.

“We expect lower revenue will result in elevated leverage of mid-5x over the next 12 months. Despite new business wins that grew revenue in 2022, we expect revenue to decrease in 2023 and beyond in the company's check business, because of secular declines in the commercial print industry.

“The company will also exit the web hosting business in the first half of 2023. This business contributed about $74 million of revenue in 2022. This will result in a revenue mix shift toward the lower-margin payments business, which will limit near-term EBITDA margin improvement and leverage reduction,” the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.