S&P ups American Greeting to positive

Standard & Poor's said it revised the outlook on American Greetings Corp. to positive from stable and affirmed the corporate credit rating at BB+.

S&P affirmed the BB+ rating on the company's unsecured debt and revised the recovery rating on the debt to 3, indicating meaningful (50% to 70%) recovery in the event of a payment default, from 4.

The outlook revision reflects the company's improved credit metrics and the expectation for the company to maintain a moderate financial policy, the agency said.

The ratings on American Greetings reflect the view that the company's business risk profile is fair, given its strong market position, broad product offerings within the greeting card industry and renewed focus on the core greeting card business, the agency said.

The ratings are constrained by the company's participation in the mature, low-growth greeting card sector, the agency added.

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