...- Irving, Texas-based arts and crafts specialty retailer The Michaels Cos. Inc. is pursuing a refinancing transaction and has reported positive sales momentum in its latest quarter. - We are affirming our 'B' issuer credit rating and revising our outlook to positive from negative. - At the same time, we are assigning a 'B+' issue-level rating to the proposed $1.62 billion senior secured term loan. The '2' recovery rating reflects our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. - We are also affirming our '###+' issue-level rating on the company's senior unsecured notes due in 2027. The '6' recovery rating indicates our expectation for negligible recovery (0%-10%; rounded estimate: 0%). - The positive outlook reflects that we could raise our rating on Michaels if it executes its maker strategy and related initiatives successfully over the next 12 months, further stabilizing revenue and profitability trends....
