Moody's downgrades ACCO

Moody's Investors Service said it lowered ACCO Brands Corp.'s corporate family and probability-of-default ratings to B1 and lowered its senior secured rating to Ba2 (LGD2, 27%) and senior subordinated rating to B3 (LGD5, 87%).

Ratings remain under review for downgrade given concerns regarding ACCO's lack of flexibility under its current financial maintenance covenants, the agency said.

Ratings were lowered to reflect the likely revenue contraction and margin pressure as a result of the more protracted recession and strengthening dollar, the agency said.

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