Moody's drops Pitney Bowes

Moody's Investors Service said it lowered the long-term rating of Pitney Bowes Inc. and supported subsidiaries to A2 from A1.

The Prime-1 short-term rating is affirmed, the agency added.

The outlook is negative.

While there are cyclical elements that are currently pressuring the performance of Pitney Bowes, "the rating action reflects the slow erosion of the company's profitability over time, despite several restructuring programs, and moderately weaker debt protection measures", said Moody's senior vice president, Richard Lane.

The agency added that it has previously communicated that the company's rating could come under pressure if operating margins trend toward 15% and debt to EBITDA approaches 2.5 times, all calculated using Moody's standard adjustments.

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