We expect arts and crafts specialty retailer The Michaels Cos. Inc. will continue to demonstrate good cash flow generation and achieve EBITDA growth in 2017 through improved customer engagement and effective merchandising. In addition, with financial sponsor ownership steadily declining, we believe the likelihood of releveraging is limited and the company will maintain leverage around current levels. We are raising all ratings by one notch, including the corporate credit rating to 'BB-' from 'B+'. The stable outlook reflects our view that generally steady operating performance trends will persist in the coming year, enabling the company to maintain adjusted leverage in the low- to mid-4.0x range in 2017. On March 15, 2017, S&P Global Ratings raised its corporate credit rating on
