S&P cuts American Greetings

Standard & Poor's said it lowered the corporate credit rating on American Greetings Corp. BB+ from BBB-.

The agency assigned a 2 recovery rating to the company's $350 million senior secured revolving credit facility maturing 2011 and $100 million senior secured delay draw (currently undrawn) term loan maturing 2013, rated BBB-.

S&P lowered the company's $200 million senior unsecured notes due 2016 to BB- from BB+ and assigned a recovery rating of 6.

"The downgrade reflects our concerns about weaker-than-expected operating performance, higher leverage and covenant cushion that is likely tighter than we originally anticipated," S&P analyst Christopher Johnson said in a statement.

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