The ratings on San Antonio, Texas-based Clarke American Corp. (CAC) reflect the consolidated credit quality of M&F Worldwide Corp. (MFW), which owns 100% of CAC, and the expectation that management will continue to seek acquisitions at the parent level. The ratings also consider the long-term prospects for declining check-printing volumes, the expectation for high competition between the three largest check printing companies as they pursue one another's customers, and CAC's customer concentration with Bank of America Corp. These factors are partially tempered by CAC's good market position within the check-printing segment, which still generates good margins relative to other printing segments, and credit measures that are in line with the ratings. CAC is the third-largest provider of check-related products and
