Moody's reviews American Greetings

Moody's Investors Service said it placed American Greetings Corp.'s Ba1 corporate family and probability-of-default ratings under review for downgrade following ongoing negative pressure on its operating cash flow and in conjunction with a notable increase in debt.

Also on review are senior secured revolving credit facility due 2011 at Baa3 (LGD2, 21%), senior secured delay draw term loan facility due 2013 at Baa3 (LGD2, 21%) and senior unsecured notes due 2016 at Ba2 (LGD5, 75%).

The company's Ba1 corporate family rating is driven by the significant business risks inherent in the greeting card industry that is characterized by low or declining growth rates, weak consumer branding, strong competition and vulnerability to its stronger retail customers and its ongoing consolidation, the agency said.

© 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.