Arts and crafts specialty retailer The Michaels Cos. Inc.'s positive operating momentum and debt reduction continue to improve credit metrics ahead of our expectations. We are revising our outlook to positive from stable and affirming the 'B+' corporate credit rating on the company. We are raising our issue-level rating on the company's term loans to 'BB' from 'BB-' in conjunction with the revised recovery rating to '1' from '2'. The positive outlook reflects a possible upgrade in the next 12 months if the company can continue to achieve success with its merchandising strategy and generates positive comparable-store sales in an overall weak retail environment that contributes to sustained earnings growth and stronger credit protection metrics. On June 27, 2016, S&P
