NEW YORK (AP) ¿ Moody's Investors Service said Tuesday it has lowered its non-investment grade ratings for Cenveo Inc., saying that conditions in the commercial printing industry may remain difficult even after the economy improves.

Moody's downgraded Cenveo's corporate family rating and probability of default rating to "B2" from "B1." The ratings agency also assigned an "SGL-3" speculative grade liquidity rating to the Stamford, Conn.-based company, indicating "adequate" liquidity in the coming 12 months.

About $1.3 billion of rated debt is affected by the action. Moody's said the ratings outlook remains negative.

"Despite the potential of some free cash flow generation as the company rations capital expenditures, with the anticipated slow rate of general economic recovery implying there is little prospect of material business improvement being observed over the next couple of years, it is expected that the company's leverage and credit protection measures will be weak over the near-to-mid term," Moody's said.

The ratings service added that price competition resulting from industry fragmentation and inflationary cost pressures may result in margin pressure throughout the industry, even after the economy improves.

Moody's said Cenveo's liquidity position may also deteriorate and may drop below adequate levels beyond the next four quarters, putting its financial covenants at risk.

Cenveo shares closed at $4.98, up 51 cents, or 11.4 percent, minutes after the ratings were issued.
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