Fitch affirms R.R. Donnelley

Fitch Ratings said it affirmed R.R. Donnelley & Sons Co.'s issuer default rating, senior revolving credit facility and senior notes and debentures at BB+ and withdrew its B short-term issuer default and commercial paper ratings. The outlook is stable.

The ratings reflect the company's intention to reduce absolute levels of debt, the agency said. Given R.R. Donnelley's cash flow generation, Fitch believes that the company can meet its pension funding requirements and reduce debt balances in order to get closer to the lower end of the company's stated leverage target of 2.5 times to 3.0 times, which the agency believes is appropriate for the ratings at this time. The company's Fitch-calculated leverage ratio was 3.2 times as of March 31.

The agency warned that there is limited headroom within the ratings for the company to underperform Fitch expectations.

The ratings also reflect R.R. Donnelley's scale and diverse product offerings as the largest commercial printer in the United States and world, Fitch said.

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