S&P upgrades Jo-Ann Stores to 'BB-'

New York City Standard & Poor's Ratings Services boosted its rating on Jo-Ann Stores Friday, saying the retailer's business continues to hold steady despite the nation's down economy.

An analyst boosted its rating on the chain to "BB-" from "B+." The rating remains in junk territory. The company's outlook is "Stable."

"The upgrade reflects our view that operating results have been quite stable despite the recession, a difficult retail environment, and more cautious discretionary spending by consumers," the analyst wrote in a research to investors. "We believe that Jo-Ann Stores can maintain the current operating trends and that credit protection measures will remain well-supportive of the rating."

Last month, the company said its first-quarter net income more than doubled as its sales and margins improved.

The chain earned $18.2 million for the quarter that ended May 1 as revenue grew 4.4% to $480.3 million.