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Deluxe Entertainment Downgrade Worsens Debt’s Downward Dive (1)

Aug. 6, 2019, 12:05 PM

Deluxe Entertainment Services Group Inc.’s debt plunged to fresh lows after it abandoned a spinoff aimed at taming its borrowings and S&P Global Ratings downgraded the media services company’s ratings.

S&P cut Deluxe’s rating by three notches to CCC- from B-, citing heightened risks the firm won’t be able to refinance borrowings that start falling due in November. Deluxe’s $768 million loan tumbled further on the downgrade, with quotes ranging from 30 cents on the dollar to 34 cents, people familiar with the matter said, less than half of the value it traded at on July 31.

Deluxe, backed ...