Fitch drops Pitney Bowes

Fitch Ratings said it downgraded Pitney Bowes Inc.'s long-term issuer default rating to BBB+ from A-, senior unsecured revolving credit facility to BBB+ from A-, senior unsecured term loan to BBB+ from A- and senior unsecured notes to BBB+ from A-.

The agency also said it downgraded Pitney Bowes International Holdings, Inc.'s long-term issuer default rating to BBB+ from A- and preferred stock rating to BBB- from BBB.

Fitch also said it affirmed Pitney Bowes's short-term issuer default rating at F2 and commercial-paper rating at F2.

The outlook is negative.

The downgrade is based on a view that the secular challenges facing Pitney Bowes are more severe than previously considered, given the continued operating weakness experienced in recent quarters, Fitch said.

Revenue continues to decline in the low single digits and has not recovered in the expected timeframe, the agency said.

Fitch acknowledged that financing and rental revenue, which lag equipment sales and remain pressured due to prior year declines, continue to impede overall growth.

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