Exposure of both primary business segments, Harland Clarke and Valassis, to structural pressures. Modest to minimal organic revenue growth. Steady discretionary cash flow generation. Low capital expenditures. Adjusted leverage in the mid-4x area. Propensity for acquisitions. Private equity ownership, which suggests a continued leveraged investment strategy. The stable rating outlook on Harland Clarke Holdings Corp. (HCHC) reflects Standard&Poor's Ratings Services' expectation that the company will achieve flat to slightly positive organic revenue growth and leverage will decline to the low-4x area over the coming 12-24 months. We could raise the rating if continued organic growth and synergy realization at Valassis outpaces declines at HCHC's traditional check printing business and lead to a stronger business risk profile assessment. In
