Fitch rates Pitney Bowes notes BBB-

Fitch Ratings said it assigned a BBB- rating to Pitney Bowes Inc.'s $400 million of senior unsecured notes due 2022.

The proceeds, along with cash on hand, will be used to repay $385 million of existing 5¾% senior notes due September 2017 and $150 million term loan due June 2017.

The negative outlook reflects the company's gross leverage exceeding the negative rating threshold of 4x, Fitch said.

Although the agency said it views actions taken by the company, including continued debt reduction, as positive, these continued operational headwinds contribute to the negative outlook.

Fitch also said it would likely stabilize the outlook if the company reduces leverage to less than 4x either through continued debt reduction or EBITDA growth.

The ratings are supported by Pitney Bowes's significant and entrenched market position in the core U.S. mailing business, the necessity of mail equipment and services to conduct business across all industries, and the diversity of the company's customer base, the agency said.

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