Moody's makes rating cut for Lexmark senior unsecured to 'Baa1'

Moody Announces Rating Change for Lexmark

Moody's Investors Service said it lowered the long-term senior unsecured rating of Lexmark International Inc (NYSE:LXK) to 'Baa1' from 'A3'.

$450 Million credit involved

The ratings lowered include the senior unsecured 150 mln usd note due May 2008 and senior unsecured 300 mln usd bank revolving credit facility maturing 2010.

Weaker Results significantly

Moody's said the downgrade reflects prospects for significantly weaker than expected operating results in the second and third fiscal quarters and the likelihood that ongoing pricing pressure throughout its laser and inkjet product offerings, a less robust installed base of inkjet units, a developing change by customers in using less profitable moderate use inkjet cartridges, and the need to increase product development and marketing spending will all contribute to weaker than historical results for Lexmark.