S&P lifts Deluxe, debt

Standard & Poor's said it raised its corporate credit rating on Deluxe Corp. to BB from BB-.

The outlook is stable.

At the same time, the agency revised its recovery rating on the company's guaranteed senior notes to 3, indicating an expectation for meaningful (50%-70%) recovery for noteholders in the event of a payment default, from 4 (30%-50% recovery expectation). S&P subsequently raised its issue-level rating on this debt to BB from BB-.

In addition, the agency revised its recovery rating on the company's senior notes to 4, indicating an expectation for average (30%-50%) recovery for noteholders in the event of a payment default, from 6 (0%-10% recovery expectation). S&P subsequently raised its issue-level rating on this debt to BB from B.

"The rating actions reflect our expectation for stable operating performance, continued low leverage, moderate financial policy, and further progress diversifying the business," S&P credit analyst Peter Bourdon said in a news release.

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