TEXT-S&P assigns Pitney Bowes notes 'BBB' rating

Tue Nov 20, 2012 4:39pm EST

Nov 20 - Standard & Poor's Ratings Services said today it assigned its 'BBB'
issue-level rating to Pitney Bowes Inc.'s proposed offer of $75 million
notes due 2022. The company expects to use the proceeds for general corporate
purposes including potentially to help repay debt maturing in 2013. Our
corporate credit rating, outlook, and individual issue level ratings are
unaffected by the transaction.

The ratings on Pitney Bowes reflect our view of the company's business risk 
profile as "satisfactory" and its financial risk profile as "intermediate," 
and incorporate our expectation that operating trends will remain under 
pressure into 2013. The ratings reflect Pitney Bowes' relatively predictable 
and recurring cash flow supported by its significant market share in the U.S. 
postage meter market, where the company continues to maintain its share of a 
shrinking market (which has been exacerbated by the current weak economy). 
EBITDA of $805 million in September and 15% margins are lower than historical 
levels as new growth initiatives have yet to offset the declines in the 
mainline business. As of Sept. 30, 2012, leverage was about 2.7x, down from 
fiscal 2011's 3.1x, as recent debt maturities were repaid. However, we expect 
fully adjusted leverage to remain in the high-2x area in the near to 
intermediate term, reflecting our expectation of a lack of revenue and EBITDA 
growth. (For the latest corporate credit rating rationale, see Standard & 
Poor's research update on Pitney Bowes published on Nov. 13, 2012, on 
RatingsDirect).

Temporary contact telephone numbers: Jacob L. Schlanger (917) 371-5651; Martha 
P. Toll-Reed (917) 685-3188

RATINGS LIST
Pitney Bowes Inc.
 Corporate credit rating           BBB/Stable/A-2

New Rating
Pitney Bowes Inc.
 Senior unsecured
  $75 million notes due 2022       BBB


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.
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