Moody's ups American Greetings, rates notes Ba2

Moody's Investors Service said it upgraded American Greetings Corp.'s corporate family rating to Ba1 from Ba2, probability of default rating to Ba1 from Ba2 and the revolving credit facility rating to Baa2 from Baa3.

The agency also said it assigned a Ba2 rating to the new $225 million senior unsecured notes.

The speculative-grade liquidity rating also was affirmed at SGL-1.

The outlook is stable.

Despite significant turmoil in the macro economy, American Greetings was able to increase its revenue in each of the first two quarters of fiscal 2012, Moody's said.

This is significant because revenue fell in each quarter in fiscal 2011, the agency said.

The ratings reflect the business risks inherent in the greeting card industry, the company's modest size, weak consumer branding and heavy competition, Moody's said.

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