Fitch rates R.R. Donnelley notes BBB

Fitch Ratings said it assigned a BBB rating to R.R. Donnelley & Sons Co.'s $350 million seven-year senior notes and affirmed its issuer default rating, senior unsecured revolving credit facility and senior unsecured notes and debentures at BBB and its short-term issuer default and commercial paper at F2.

The outlook is stable.

Proceeds of the note offering are expected to be used to fund a tender offer for the company's 5.625% senior notes due January 2012 and 4.95% senior notes due May 2010.

Over the intermediate to long term, Fitch expects management's commitment to investment-grade ratings to be evidenced by adherence to potentially even tighter leverage parameters should industry conditions deteriorate beyond current expectations. Fitch recognizes the company has the flexibility to reduce its dividend to enhance free cash flow.

As of June 30, the last-12-months unadjusted gross leverage was around 2.5 times.

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