S&P lowers Pitney Bowes

Standard & Poor's said it lowered its corporate credit ratings on Pitney Bowes Inc. and its subsidiaries to A from A+ and removed the ratings from CreditWatch, where they were placed with negative implications on Nov. 16.

The outlook is stable.

The agency said the downgrade reflects its expectation that strategic growth and shareholder initiatives will continue at levels that are likely to preclude the company from sustaining leverage at a level more consistent with the previous rating.

The A rating reflects Pitney Bowes' position as the dominant maker of mailing equipment, as well as its consistent profitability and cash flow generation, S&P said. And while mailing equipment remains the largest business, accounting for about 70% of total revenues, the agency expects the company to continue making moderate-size acquisitions in adjacent markets.

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