S&P cuts American Greetings

Standard & Poor's said it lowered the corporate credit rating on American Greetings Corp. to B+ from BB+.

At the same time, S&P lowered its issue-level rating on the company's $400 million senior secured revolving credit facility due 2017 to BB from BBB and an issue-level rating on the 7 3/8% senior unsecured notes due 2021 to B+ from BB+. The recovery ratings remain 1 (indicating an expectation of very high [90%-100%] recovery in the event of a default) and 4 (average [30%-50%] recovery), respectively.

All of the ratings on American Greetings remain on CreditWatch, where they were placed with negative implications on Sept. 27, 2012.

The downgrade follows the company's announcement that American Greetings will merge with Century Intermediate Holding Co., an entity that will be indirectly controlled by the American Greetings' chairman, CEO, COO and certain other members of the Weiss family and related parties.

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