S&P changes Pitney Bowes view to stable

S&P said it changed the outlook on Pitney Bowes Inc. to stable from negative on news the company plans to sell its software business for $700 million in cash to Syncsort.

“We are revising our outlook on Pitney Bowes to stable from negative, reflecting our expectation that proceeds from the sale of its software business will enable the firm to maintain adjusted leverage at or below the mid-3x area in spite of ongoing margin pressure from declining revenues in the highly profitable small and midsize business (SMB) segment,” said S&P in a press release.

S&P affirmed Pitney Bowes’ ratings. The company’s debtholder-friendly actions support the BB+ rating for at least the next 12 months, the agency said.

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