S&P cuts Deluxe Entertainment

Standard & Poor's said it lowered its corporate credit rating on Deluxe Entertainment Services Group Inc. to CCC+ from B-. The outlook is negative.

The agency said it also lowered its issue-level rating on Deluxe Entertainment's senior secured term loan to B- from B. The recovery rating on this debt remains at 2.

"The rating action reflects our expectation that the company's film processing and distribution segment will continue to decline at a steep pace, pressuring covenant compliance and discretionary cash flow, which could potentially strain liquidity," said S&P credit analyst Daniel Haines in a news release.

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