Moody's boosts ACCO Brands

Moody's Investors Service said it upgraded ACCO Brands Corp.'s corporate family and probability of default ratings to B2 from B3, along with its senior subordinated note rating to Caa1 (LGD 5, 83%) from Caa2 (LGD 5, 82%) and the senior secured note rating to B1 (LGD 3, 38%) from B2 (LGD 3, 36%). Its SGL-2 speculative grade liquidity rating was affirmed.

The outlook is stable.

The upgrade was due to the positive trend in the company's credit metrics as a result of significant operational improvements made by management to address the difficult economic climate and industry challenges, Moody's said, and its good liquidity.

The rating reflects its still high leverage, modest interest coverage after capital expenditures and negative top line pressure mostly due to ongoing market volume declines in the United States, Europe and Canada, the agency said.

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