Deluxe Corporation's Credit Profile Checks Out, Warrants Rating Above High-Yield
Valens Credit • Fri, Sep. 26
- Moody's high-yield Ba2 rating of DLX overstates credit risk by not recognizing fundamentals.
- DLX's CDS of 288bps should tighten to the Valens Credit Intrinsic CDS (iCDS) of 209bps.
- Cash flows from operations will strongly build DLX's cash reserves from 2015 through 2018.
- DLX's revolver offers liquidity for refinancing near-term maturities.