Fitch downgrades R.R. Donnelley, rates credit facility BBB-

Fitch Ratings said it assigned a BBB- rating to R.R. Donnelley & Sons Co.'s proposed $1.25 billion senior secured bank credit facility and downgraded its issuer default rating and senior notes and debentures to BB from BB+. The outlook remains negative.

The new secured facility will replace the company's $1.75 billion unsecured credit facility due December 2013. The agency said the notching on the new facility reflects the benefit from its security package and resulting priority in the capital structure.

The ratings and negative outlook reflect the secular challenges facing R.R. Donnelley, Fitch said. In the agency's view, more than 50% of the company's revenues face some degree of secular headwinds, and Fitch does not believe certain sub-segments will exhibit positive organic growth going forward.

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