S&P lowers American Achievement

Standard & Poor's said it lowered the corporate credit rating on American Achievement Corp. to B- from B.

S&P also lowered the existing issue-level rating on the company's senior secured second-lien notes due 2016 to B-. The recovery rating remains 4.

"The downgrade to B- reflects S&P's expectation that American Achievement's ongoing unfavorable revenue trends will continue to pressure EBITDA and discretionary cash flow, drive leverage higher and could further weaken its already thin interest coverage, especially if the company needs to access its revolving credit facility to fund the business," S&P credit analyst Christopher Valentine said in a news release.

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