S&P: Oriental Trading on positive watch

Standard & Poor's said it placed the B corporate credit rating on Oriental Trading Co. Inc. on CreditWatch with positive implications.

The CreditWatch placement follows news that Berkshire Hathaway Inc. entered into an agreement to acquire Oriental Trading, S&P said.

The watch also denotes an expectation that S&P will raise the corporate credit rating on Oriental Trading to BB- from B, the agency said.

The expected two-notch upgrade reflects a view that Oriental Trading's financial risk profile will benefit from the acquisition by much stronger Berkshire Hathaway, S&P said. The agency said it anticipates that all outstanding debt at Oriental Trading will be paid following the closure of the transaction.

Oriental Trading's recent efforts to revitalize the company's brand also will continue to propel operational gains and support cash flow generation for the company, S&P said.

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