S&P: American Achievement on watch

Standard & Poor's said it revised the Creditwatch implications on its ratings for American Achievement Corp. to negative from developing.

The corporate credit rating on the company is B, S&P said, adding that this action follows the announcement by American Achievement Group Holding Corp., the parent company of AAC, that its acquisition agreement with Herff Jones has been terminated because the companies have not received the requisite regulatory approvals necessary to complete the transaction.

"The negative Creditwatch listing reflects American Achievement's high debt leverage and diminished financial flexibility, given that the previously assumed debt repayment from the proposed transaction is no longer a possibility," said S&P credit analyst Michael Listner.

"These factors weigh heavily on the company's financial profile and will likely pressure the current credit rating."

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