More than the title of a Ray Charles tune, this is an apt description of the printing business environment, according to a report from Fitch ratings.
On a debt-weighted basis Fitch has a stable industry outlook. Fitch believes the larger players, such as R.R. Donnelley, that enter an economic downturn with financial flexibility and access to capital could have the potential to acquire capacity at attractive values. Fitch also expects these companies will have the financial wherewithal to continue to invest in technology and more flexible equipment to improve efficiencies.
Fitch feels RRD is well positioned for a possible downturn. I think you could extend this assessment to other well capitalized public and private firms.
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