Summary: Jo-Ann Stores Inc. Apr 11

Standard & Poors, April 2011

Abstract
The ratings on Hudson, Ohio-based Jo-Ann Stores Inc. reflect Standard & Poor's Ratings Services' expectations for somewhat higher sales, some widening in operating margins as the company adds its new store format and continues to remodel other stores, and credit metrics modestly improving over the next year following the leveraged buyout (LBO) by affiliates of Leonard Green Partners L.P. for approximately $1.6 billion or $61.00 per share in cash. We view the company's financial risk profile as highly leveraged following its acquisition by affiliates of Leonard Green on March 18, 2011, given its high debt levels, weak credit protection measures, and its moderate free operating cash flow generation. Pro forma for the transaction, we estimate that adjusted total debt to...

Companies mentioned in this report are:
- Jo-Ann Stores Inc.

Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- Jo-Ann Stores Inc.

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