Marketing company Valassis upgraded by Moody’s after move to pay down debts

Marketing company Valassis upgraded by Moody’s

NEW YORK — Moody’s Investors Service upgraded its credit ratings for Valassis Communications Inc. on Friday, citing the direct marketer’s moves to pay down debt.

The upgrade, which could potentially reduce the company’s borrowing costs, comes after Valassis bought back $270 million of its own bonds. It plans to buy back about $300 million of debt in all.

Moody’s raised the company’s overall rating by one notch to “Ba2″ from “Ba3,” still in non-investment, or “junk” grade territory. It also raised the rating on the company’s unsecured notes a notch to “Ba3″ from “B1.”

Valassis has been able to reduce its debt thanks largely to proceeds from an antitrust lawsuit against News Corp. subsidiary News America Marketing. In January, the media conglomerate agreed to settle the case for $500 million.

The ratings affect about $750 million in debt.

Valassis shares rose 25 cents to $36.15 in afternoon trading.