Moody's ups American Greetings

Moody's Investors Service said it upgraded American Greetings Corp.'s corporate family and probability-of default ratings to Ba2 from Ba3, and raised the senior secured debt instrument rating to Baa3 (LGD2, 23%) and senior unsecured notes rating to Ba3 (LGD5, 77%).

The actions reflect meaningful operational improvements in the past year as well, the agency said.

Leverage is expected to be less than 3 times debt to EBITDA in 2011.

The company's SGL2 liquidity rating was affirmed based on expectations that it will maintain good liquidity over the next four quarters due to strong cash flow generation despite seasonality, good availability under its revolving credit facility and generous cushion under its financial maintenance covenants, according to the agency.

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