S&P: Valassis unaffected

Standard & Poor's said its ratings and outlook for Valassis Communications Inc. (BBB-/stable/--) would not be affected by the company's announcement that its board of directors has authorized an open-market share repurchase program for up to 5 million shares.

With free cash flow levels, $205 million in cash balances on hand as of Sept. 30 and leverage that, at 1.7x, is comfortable for the current ratings level, S&P said Valassis has adequate internal liquidity to support the new share repurchase authorization.

S&P said the company's liquidity and financial profile cushion also supported the company's ratings and outlook following the November announcement of the U.S. Federal Trade Commission's preliminary investigation into potentially unfair methods of competition in connection with Valassis' pricing policy.

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