Growing creative services segment, with more healthy long-term fundamentals than Deluxe's film processing and distribution business. Exposure to widespread adoption of digital projection technology by motion picture exhibitors; Highly leveraged; and High mandatory debt amortization payments. The 'B' corporate credit rating on Deluxe Entertainment Services Group Inc. reflects our expectation that the company's financial risk profile will remain "aggressive" (based on our criteria), given its still-high leverage. In addition, it is owned by private-equity investors that financed a special dividend from the company using debt. We view Deluxe's business profile as "vulnerable" (based on our criteria) because of its exposure to the widespread adoption of digital projection technology by motion picture exhibitors, particularly in North America. We expect the company's...
Companies mentioned in this report are: Deluxe Entertainment Services Group Inc.
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