On Feb. 28, 2007, Standard&Poor's Ratings Services affirmed its 'B+' corporate credit rating on Clarke American Corp. The ratings have been removed from CreditWatch with negative implications where they were placed on Dec. 20, 2006. The outlook is negative. At the same time, Standard&Poor's assigned its 'B+' bank loan rating and '3' recovery rating to the company's proposed $1.9 billion senior secured credit facilities. The credit facilities consist of a $1.8 billion term loan due seven years from closing and a $100 million revolver due six years from closing. The facilities are rated the same as the corporate credit rating, and with a recovery rating of '3', indicate the expectation for meaningful (50%-80%) recovery of principal
