S&P affirms Deluxe Entertainment

Standard & Poor's said it affirmed Deluxe Entertainment Services Group Inc.'s B- corporate credit rating and removed it from CreditWatch, where it was placed with positive implications Oct. 1.

The outlook is stable.

"The B- rating reflects Deluxe's still-narrow headroom despite any potential amendment, considering progressively tightening financial covenants and the risk of widespread adoption by motion picture exhibitors of digital projection technology, particularly in North America," S&P analyst Tulip Lim said in a statement.

The rating also reflects Deluxe's dependence on a steady film release schedule by several large movie studios and an aggressive financial policy, the agency said.

At June 30, the company's lease-adjusted leverage was 4.6x.

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