Moodys upgrades Jo-Ann Stores

New York City Moody's Investors Service on Wednesday upgraded its rating on Jo-Ann Stores 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 2008.