S&P ups American Greetings

Standard & Poor's said it raised the corporate credit rating on American Greetings Corp. to BB+ from BB, along with its secured debt ratings to BBB from BB+ and revised the recovery rating on these issues to 1, indicating an expectation for 90% to 100% recovery in the event of a default, from 2. The unsecured debt rating was raised to BB from B+ with a recovery rating revised to 5 for an expectation of 10% to 30% recovery in a default, from 6.

The outlook is stable.

The ratings reflect American Greetings' improved financial profile following several strategic and cost reduction initiatives implemented over the past year that have resulted in the company's return to profitability more consistent with historical levels, S&P said.

The ratings also consider the company's improved credit metrics, strong market position and broad product offerings within the greeting card industry, the agency said.

These strengths are partially offset by the company's participation in the low growth greeting card sector, S&P added.

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