Moody's cuts American Greetings

Moody's Investors Service said it downgraded American Greetings Corp.'s corporate family rating to B1 from Ba1 in connection with the management buyout by a group led by chairman Morry Weiss, chief executive officer Zev Weiss and chief operating officer Jeffrey Weiss, in a deal valued at around $1 billion.

At the same time, Moody's downgraded the $225 million of existing senior unsecured notes to B3 from Ba2.

The agency said it will rate the $600 million senior secured credit facility (consisting of a $200 million revolving credit facility and a $400 million term loan) prior to its launch.

The outlook is stable.

The rating of the unsecured notes reflects the new capital structure, Moody's said.

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