Moody's upgrades Jo-Ann Stores' rating

Moody's upgrades Jo-Ann Stores' rating on improved financial picture and performance

• On 6:43 pm EDT, Wednesday September 2, 2009

NEW YORK (AP) -- Moody's Investors Service on Wednesday upgraded its rating on Jo-Ann Stores Inc. as the retailer has improved its operating performance and financial picture.

Moody's upgraded the company's probability of default rating and corporate family rating to B1 from B2 and upgraded its rating on the company's senior subordinated notes to B2 from B3. The outlook is stable.

Moody's said the company has been able to improve its performance despite the difficult economic environment. While the seasonal component of its business will remain volatile, Moody's said it expects the company to continue to generate health free cash flow and build up its cash on hand.

Moody's last upgraded the company in December of 2008.

Shares of Jo-Ann Stores fell 20 cents to close at $26.44 Wednesday.