The 'B+' rating on Harland Clarke Holdings Corp. (HCHC) reflects Standard&Poor's Ratings Services' expectation that leverage will remain high, that check printing will remain in long-term decline, and that the financial policy of the company's parent, private-equity investor M&F Worldwide Corp. (MFW), will remain aggressive. The financial policy of the company and its parent and the company's high leverage are the principal reason we consider HCHC's financial risk profile aggressive. The company's exposure to a secular shift from printed check usage to alternative forms of payment underpins our assessment of the business risk profile as weak. We believe these dynamics will result in the company's revenue and EBITDA declining at a low-single-digit pace. HCHC is one of the
