S&P rates American Greetings loan BB+, notes BB-

S&P said it affirmed its BB- corporate credit rating on American Greetings Corp. The outlook is stable.

S&P also assigned a BB+ issue-level rating to the company's new $275 million revolving credit facility due 2021 and $300 million term loan A with a recovery rating of 1.

S&P also assigned a BB- rating to the new senior unsecured notes due 2025, with a recovery rating of 4, indicating an expectation of average recovery (30%-50%, at the low end of the range) in the event of a payment default.

The BB+ rating on the existing term loan, the B rating on the HoldCo notes and the BB- rating on the senior unsecured notes due 2021 are affirmed, and the respective 1, 6 and 3 recovery ratings are unchanged.

The 1 recovery rating indicates an expectation of very high (90%-100%) recovery in the event of a payment default. The 3 recovery rating indicates an expectation of meaningful recovery (50%-70%, at the high end of the range). The 6 recovery rating indicates an expectation of negligible recovery (0%-10%). The ratings on the existing term loan, HoldCo notes and the senior unsecured notes due 2021 will be withdrawn at the close of the transaction.

S&P said the rating affirmation incorporates American Greetings' recent refinancing transaction that is effectively leverage neutral.

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