S&P upgrades Express

Standard & Poor's said it raised the corporate credit rating on Express Inc. to BB- from B+, reflecting an expectation that the company's operating performance will remain good and credit metrics are likely to further improve.

The agency also said it upgraded the rating on the company's $125 million secured term loan due 2014 to BB+ from BB with a recovery rating of 1, along with the rating on its $250 million senior unsecured notes due 2018 to B+ from B with a recovery rating of 5.

The ratings reflect an expectation that the company's consistent top-line growth from store expansion and positive same-store sales will offset margin contraction from higher commodity prices in 2011, S&P said.

The agency also said it believes the company will continue to generate free operating cash flow and use it to modestly reduce debt.

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