S&P changes American Greetings view

S&P said it affirmed all its ratings on American Greetings Corp., including the BB- corporate credit rating, and revised the outlook to negative from stable.

The agency said the outlook revision reflects leverage above expectations for the BB- rating and an opinion that it may not materially improve, depending on the degree to which the company prioritizes debt repayment over dividends to its controlling owners, the Weiss family.

In addition, the company's top line remains pressured by lower sales volume, particularly in ancillary gift packaging and party goods, and foreign currency headwinds from a weaker British pound in the company's U.K. operations, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.