S&P changes Merrill Corp. outlook to stable

Standard & Poor's revised its outlook for Merrill Corp. to stable from negative. At the same time, S&P confirmed its B corporate credit and senior secured bank debt, and CCC+ subordinated debt ratings for the company.

Ratings reflect the company's significant debt levels, moderate-size cash flow base, competitive market conditions and the affect that the volatile capital markets can have on the company's transaction-based financial printing business, S&P said.

Somewhat offsetting these factors is the company's good market position in financial printing and a diversified customer base, and the increased focus on diversifying its business, which is expected to help provide more stable revenues and cash flows.

The stable outlook is due to the expectation that although the overall printing sector is anticipated to remain pressured throughout 2003, Merrill's good market position in financial printing and diversification into document management services is expected to mitigate material downside exposure.

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