BANGALORE (Thomson Financial) - Moody's Investors Service has revised
Valassis Communications Inc.'s rating outlook to positive from stable, saying it
expects the company to continue to make good progress in integrating and
improving its ADVO's shared mail operations, and will continue to allocate free
cash flow to debt reduction.
This will sustain further improvement in Valassis' credit metrics since the
ADVO acquisition and could position the company for an upgrade in 2009, the
ratings agency added.
Moody's said, however, the company will need to manage ongoing pricing
pressure in its free-standing insert business and through a difficult economic
and advertising environment.
At the same time, Moody's affirmed the company's 'B1' corporate family
rating, 'B1' probability of default rating and associated debt ratings.
TFN.newsdesk@thomson.com
bsu
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