The speculative-grade ratings on Winston-Salem, N.C.-based Inmar Inc. reflect our expectation that the company will have stable operating performance in the near term and enhance credit ratios with debt reduction through free cash flow. We view the company's financial risk profile as aggressive. We also assess its business risk as weak. This incorporates our belief that Inmar generally has stable and recurring businesses, but that unfavorable macroeconomic and industry conditions could hurt the company's reverse logistics business and overall profits. Operating trends at Inmar stabilized in the first quarter of 2011, after relative weakness in 2010, and we anticipate similar performance for the balance of 2011. However, we believe the performance trajectory of the company's two businesses will change in
