Moody's: Pitney Bowes unchanged

Moody's Investors Service said that Pitney Bowes Inc.'s A1 long term and Prime-1 short term ratings with a stable outlook would not be affected by its announcement that (1) its board has authorized a new $500 million share buyback program coupled with a 6% increase in its common dividend, (2) the company will explore strategic alternatives for its U.S. based management services business and (3) the company will take a $300 million to $400 million restructuring charge in the fourth quarter to reduce headcount by 1,500 or 4% of its work force and to write off certain inventory and lease residuals on equipment that it will discontinue.

Moody's said that the existing credit ratings can accommodate the share buyback announcement and the 6% increase in its common dividend, even though they are more aggressive than the company's historical practice.

With reduced share count, the agency said that common dividend payments will likely be flat.

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