S&P rates Clarke American loan B+, notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Clarke American Corp., a B+ bank loan rating with recovery rating of 3 to the company's proposed $480 million senior secured credit facilities - consisting of a $40 million five-year revolving credit facility and a $440 million six-year term loan B - and a B- rating to the company's planned $175 million eight-year senior unsecured notes.

The outlook is stable.

Proceeds, together with a $200 million contribution from M&F Worldwide Corp., will be used primarily to complete the acquisition of Clarke American by M&F. Upon completion of the acquisition, Clarke American will become a subsidiary of M&F.

The ratings reflect the consolidated credit quality of M&W and factors in S&P's expectation that management will continue to seek acquisitions at the parent level, long-term prospects for declining check-printing volumes and the expectation for a high level of competition between the three largest check-printing companies as they pursue one another's customers, the agency said.

S&P said these factors are partially tempered by the company's good market position within the check-printing segment, which still generates good margins relative to other print segments, and credit measures that are in line with the ratings.

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