S&P cuts American Achievement outlook to negative

Standard & Poor's said it revised its rating outlook on American Achievement Corp. to negative from stable.

At the same time, the agency said that it affirmed its outstanding ratings on the company, including the B corporate credit rating.

"Even though EBITDA coverage of cash interest is currently good for the rating, the outlook revision reflects the company's slower-than-anticipated cash flow growth and debt repayment, as well as its accreting consolidated debt burden," explained S&P credit analyst Emile Courtney.

"This could lead to higher leverage and the possibility that AAC may refinance some part of its capital structure over the intermediate term."

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