Moody’s: Pitney Bowes outlook to negative

Moody's Investors Service said it changed Pitney Bowes, Inc.'s outlook to negative from stable and affirmed its senior unsecured debt ratings at Baa3.

Moody’s said the outlook change reflects its increasing concerns about the company's ability to stabilize revenues and improve cash flow generation to support its investment grade rating.

“The pressures on the company's legacy mailing businesses, weaker than expected performance in the software business and a tepid macroeconomic environment have contributed to the company missing a series of revenue and margin targets,” the agency said in a news release.

“In addition, revenue and cash flow contributions from the digital commerce business are not growing fast enough to overcome the declines in the company's mailing units.”

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