...- Vericast Corp. has completed the sale of its print and digital advertising business (operating as Valassis Communications Inc. [VCI]) to RR Donnelley Inc. (RRD), which will reduce its debt by $1.2 billion and improve its pro forma leverage and cash flow. - Therefore, we raised our issuer credit rating on the company to 'B-' from '###' to reflect the expected improvement in its credit metrics. - At the same time, we raised our issue-level rating on Vericast' first-lien debt to 'B' from '###+' and our issue-level rating on its second-lien debt to '###' from '##'. Our '2' recovery rating on the first-lien debt and '6' recovery rating on the second-lien debt are unchanged. - The stable outlook reflects our expectation that, pro forma for the transaction, the company's leverage will decline to about 5x and its free operating cash flow (FOCF) to debt will rise to about 3%. We also expect Vericast's pro forma business will benefit from stable revenue and strong margins due to its leading position...
