Moody's ups Michaels notes

Moody's Investors Service said it upgraded Michaels Stores, Inc.'s $800 million senior unsecured notes to B3 from Caa1.

All other ratings, including the B2 corporate family rating, were affirmed.

The outlook remains positive.

Moody's said the upgrade of the company's $800 million senior unsecured notes due 2018 reflects the closing of the company's $200 million add-on note offering and that proceeds were used to prepay $200 million of the company's senior secured term loan.

The upgrade also takes into consideration that Michaels issued a redemption notice for all of its outstanding subordinated discount notes due 2016, the agency said.

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