The rating on Harland Clarke Holdings Corp. (HCH) reflects its high debt leverage, and exposure to a secular shift from print check usage to alternative forms of payment. These factors are somewhat mitigated by the company's stable cash flow generation and increased diversification following the John H. Harland and Data Management acquisitions. In addition, the rating incorporates the credit quality of M&F Worldwide Corp. (MFW), the parent of Harland Clarke Holdings, and the expectation that MFW will continue to maintain an aggressive financial policy. In fiscal 2008, revenue, pro forma for the John H. Harland and Data Management acquisitions, declined approximately 1.4% as compared to 2007, primarily because of decreases in HCH's check printing segment, Harland Clarke, which was partially
