Moody’s rates Pitney Bowes notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Pitney Bowes Inc.'s proposed $300 million senior unsecured notes due 2022.

The outlook remains negative.

The company intends to use the net proceeds, along with cash on hand, to refinance about $535 million of debt coming due in 2017.

With the proceeds, Pitney Bowes' will have prefunded debt maturing in 2017, which combined with previous debt repayments stand to lower the company's Moody's adjusted debt to EBITDA leverage to below 3 times by the end of 2017.

The agency said it anticipates that the company will continue to apply a measured approach to its free cash flow allocation and will continue to pay down debt in line with the declining finance receivables associated with its mailing business.

The Baa3 rating is supported by Pitney Bowes' strong leadership in its postal metering business and a demonstrated commitment to maintaining strong credit protection measures, Moody’s explained.

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