Moody's lowers Mega Brand

Moody's Investors Service said it lowered Mega Brand, Inc.'s ratings to B2 from B1 after the company posted its full year results for 2007.

The rating remains on review for possible further downgrade, the agency said, noting that the SGL 3 was affirmed.

Moody's said that the financial flexibility of the company had deteriorated significantly in 2007 due both to lower than expected sales of Magnetix products and new special charges related to a new recall and special items.

The weak results led to the downgrade of the corporate family rating to B2, Moody's noted, adding that debt to EBITDA jumped to over 5.5 times as of year-end 2007 from 3.9 times in 2006.

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