MORE BAD NEWS FOR LEXMARK …….

[Anonymous]

http://www.kentucky.com/211/story/778889.html
Moody’s downgrades Lexmark
Moody’s
Investors Service downgraded Lexmark International’s debt rating
Tuesday, following a similar move earlier this year by Standard &
Poor’s.
Richard Lane, a
Moody’s analyst, cited the company’s lower sales in recent quarters in
explaining the downgrade, emphasizing “a weak demand environment and
aggressive competition from a group of larger and more diversified
competitors.”He lowered the company’s rating from Baa2 to Baa3. That
remains investment grade. Ratings don’t fall to what’s typically called
junk status until they’re lowered one more notch to Ba1.Standard &
Poor’s had lowered the company’s rating to BBB-, its last rating above
non-investment grade. Lower ratings can mean paying higher interest
rates on debt.Lexmark spokesman Jerry Grasso emphasized that “Lexmark
has a very strong financial position.””Lexmark’s business model
continues to drive good cash generation,” Grasso said. “And 2008 marked
the seventh consecutive year where the company generated over $450
million in net cash from operating activities.”

Lane said the
ratings outlook for Lexmark is negative, but he applauded its liquidity
profile, noting that it had $811 million in cash and equivalents at the
end of March.Its two pieces of debt, he said, don’t mature until 2013,
for $350 million, and 2018 for an additional $300 million. He said
Lexmark also has access to $300 million in unsecured revolving credit
that matures in January.

[Author]

May 1, 2009 at 3:16 PM