Fitch rates R.R. Donnelley BBB

Fitch Ratings said it assigned Donnelley & Sons Co. an issuer default rating of BBB, senior unsecured revolving credit facility and senior unsecured notes and debentures ratings of BBB, and a short-term issuer default rating of F2.

The outlook is stable.

The ratings consider the company's scale and diverse product offering as the world's largest commercial printer and are supported by the company's adequate financial flexibility, liquidity and ability to generate cash flow, Fitch said.

Rating concerns include the challenges facing the printing industry, including fragmentation, excess capacity, persistent pricing pressures, universal consolidation, regulatory changes and declining demand, the agency said.

The rating also incorporates the company's role as a consolidator in the industry and the expectation that share buybacks will be part of a balanced financial policy, according to the agency.

The issuer's pro forma gross debt-to-operating EBITDA ratio is about 2.7 times for the 12 months ended June 30.

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