Moody's lifts American Greetings view to positive

Moody's Investors Service said it revised American Greetings Corp.'s outlook to positive from stable because of the company's improving credit metrics and operating performance.

The agency also said it affirmed its Ba2 corporate family rating, Ba2 probability of default rating, Baa3 revolving credit facility rating, Ba3 senior unsecured notes rating and SGL-1 speculative grade liquidity rating.

The company improved its cost structure and streamlined its operations with the disposition of its retail operations and successful integrations of Recycled Paper Greetings and Papyrus, Moody's said.

These initiatives have paid off over the last couple of years and position American Greetings for further growth, the agency said.

The ratings also reflect the business risks inherent in the greeting card industry, which is characterized by low or in some cases declining growth rates, modest size, weak consumer branding and heavy competition, Moody's said.

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