Moody's lowers R.R. Donnelley, rates notes Ba1

Moody's Investors Service said it downgraded R.R. Donnelley & Sons Co.'s senior unsecured bank credit facility to Ba1 (LGD 4, 54%) from Baa3, its senior unsecured regular bond/debenture to Ba1 (LGD 4, 54%) from Baa3, its multiple seniority shelf to provisional Ba1 from provisional Baa3 and commercial paper to not-prime from prime-3.

The downgrade concludes a review that began on May 4, Moody's said.

The agency also said it assigned to the company a Ba1 corporate family rating and SGL-1 speculative-grade liquidity rating, along with a Ba1 (LGD 4, 54%) rating to its proposed $500 million senior unsecured unguaranteed notes due 2018.

The outlook is now stable.

The downgrade incorporates both systemic and company-specific matters, Moody's said. The company participates in an industry with very poor supply and demand balance, the agency said.

Moreover, demand can fluctuate dramatically over short periods of time, Moody's added.

The draw support from the company's good liquidity profile, the agency said.

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