The Michaels Cos. Inc. Outlook Revised To Positive On Improving Credit Metrics; 'B+' Rating Affirmed

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. NEW YORK (S&P Global Ratings)

...+ 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 '##' from '##-' 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. NEW YORK (S&P Global Ratings) June 27, 2016--S&P Global Ratings revised its outlook on Irving, Texas-based The Michaels Cos. Inc. to positive from stable. We also affirmed our 'B+' corporate credit rating on the company. At the same time,...

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