May 30 - Standard & Poor's Ratings Services said today that its 'BB-' issue rating on Cenveo Corp.'s senior secured debt due 2016 is not changed by the $65 million add-on. The recovery rating of '1', indicating our expectation of very high (90% to 100%) recovery for lenders in the event of a payment default is unchanged. Cenveo Corp. is a subsidiary of Stamford, Conn.-based diversified printing company Cenveo Inc. The issue rating is two notches above the 'B' corporate credit rating on the parent. We expect Cenveo to use net proceeds to pay down its revolving credit facility. The company also plans to amend its credit agreement to allow the company to use its revolving credit facility to redeem the 7.875% senior subordinated notes due 2013. The corporate credit rating on Cenveo Inc. is 'B', with a negative rating outlook. The rating reflects our expectation that Cenveo's leverage will remain high and coverage will remain weak. For these reasons, we consider Cenveo's financial profile "highly leveraged" (based on our criteria). We view the company's business risk profile as "weak" (based on our criteria) because of Cenveo's participation in the highly competitive and cyclical printing market. We expect ongoing pricing pressure from industry overcapacity and limited scope for margin improvement. Over the near term, we expect this will result in flat- to lower-organic revenue. Our negative outlook reflects the potential for a downgrade as the Dec. 1, 2013 maturity date of the remaining balance on its notes approaches. We could lower our rating if the balance of the notes due 2013 remains meaningful, the company's margin of compliance declines to 10% or lower, discretionary cash flow contracts to less than $50 million, and we become increasingly convinced that the company's cash flow generation and liquid resources may be insufficient to meet its 2013 obligations. RELATED CRITERIA AND RESEARCH -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009 -- Business Risk/Financial Risk Matrix Expanded, May 27, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATINGS LIST Cenveo Inc. Corporate Credit Rating B/Negative/-- Senior Secured $445 million term loan due 2016 BB- Recovery Rating 1 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.