Moody's ups Bowne outlook to positive

Moody's Investors Service said it affirmed Bowne & Co. Inc.'s Ba3 corporate family rating and B2 $75 million convertible subordinated debentures due 2033.

The outlook was changed to positive from stable.

Moody's said the change in the outlook reflects the continuing improvement of the company's liquidity and leverage profile, which has largely resulted from the sale of its outsourcing and globalization businesses, and a steady performance in Bowne's non-transactional print business.

Bowne's rating reflects its relatively strong cash position, which Moody's estimated to be in excess of its total debt; the steady performance of Bowne's top line, which has been largely driven by its non-transactional financial print business; and the absence of any near-term debt maturities.

However, the rating is constrained by the formidable competition Bowne faces in its financial print business from rivals including R.R. Donnelley, Merrill Corp. and others and the vulnerability of this business to volatility within the capital markets sector, the agency said.

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