S&P downgrades Visant

Standard & Poor's said it lowered its corporate credit rating on Visant Holding Corp. to B from B+. The outlook is negative.

At the same time, the agency lowered its issue-level ratings on Visant's senior secured credit facilities to B+ from BB-. The 2 recovery rating remains unchanged and indicates an expectation of substantial (70%-90%) recovery in the event of payment default.

Finally, S&P lowered its issue-level rating on Visant's senior unsecured notes to CCC+ from B-. The 6 recovery rating remains unchanged and indicates an expectation for negligible recovery (0%-10%).

"The downgrade to B reflects our expectation that Visant's ongoing unfavorable revenue trends will continue to pressure EBITDA and discretionary cash flow, and drive leverage higher," said S&P credit analyst Christopher Thompson in a news release.

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