S&P: ACCO on positive watch

Standard & Poor's said it placed all of its ratings on ACCO Brands Corp., including the B+ corporate credit rating, on CreditWatch with positive implications.

The agency said the CreditWatch placement follows the announcement that ACCO will merge with Mead C&OP through a Reverse Morris Trust transaction, expected to close in the first half of 2012.

"We believe the merger could strengthen ACCO's business and financial profiles and result in a higher rating," said S&P credit analyst Stephanie Harter in a news release. "Although a meaningful amount of EBITDA and debt will be added to the combined company, in our opinion, the combination of the two companies could result in stronger credit metrics than ACCO's current stand-alone business."

S&P said it would resolve the CreditWatch by the middle of 2012 when more information regarding the transaction, related financing, and shareholder and regulatory approval becomes available.

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