S&P still may lift Amscan

Standard & Poor's said the B corporate credit rating on Amscan Holdings Inc. will remain on CreditWatch with positive implications, where they were originally placed on Sept. 28, reflecting the company's improved credit metrics.

The agency said Amscan's plans to pay a $310 million debt-financed dividend to its equity sponsors could weaken credit metrics to below expectations for a one-notch upgrade.

The initial placement reflects the agency's view that Amscan's financial profile has improved over the past year, S&P said.

In addition, the company's operating performance has been relatively stable over the past few years as it benefits from its strong presence in the niche party goods industry and the industry's somewhat recession-resistant characteristics, the agency said.

Adjusted total debt-to-EBITDA ratio for the trailing 12 months ended June 30 was 4.5x, down from 5.2x in the year-ago period.

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