S&P upgrades Jo-Ann Stores

Standard & Poor's Rating Services on Thursday raised its corporate credit rating on fabric and craft retailer Jo-Ann Stores Inc. largely due to its debt reduction efforts.

S&P raised its rating to B+ from B, as a result of the company's improved profitability and debt reduction, which was achieved through a recent repurchase of its senior subordinated notes. The outlook is stable.

"We are also confident that the company can maintain credit metrics at current levels," Standard & Poor's credit analyst Charles Pinson-Rose said.

The rating agency also raised the rating on Jo-Ann's subordinated notes one-notch to B- from CCC+. The recovery rating on those notes remains at 6.