S&P Global Upgraded Michaels Cos. Credit Rating
Retailers should track how debt reduction and steady sales growth influence creditworthiness and borrowing capacity.
Updated on Sept. 28, 2026 in Business Strategy
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S&P Global upgraded the credit rating for arts and crafts retailer Michaels Cos. from B- to B. The rating adjustment reflects improved operating performance and a successful reduction in the firm's debt load.
Why it matters
The upgrade underscores how disciplined debt paydowns, paired with consistent sales growth, can directly improve a company's financial profile. For operators, this movement highlights the importance of managing leverage as a lever for market stability.
S&P Global moved Michaels Cos. to a B credit rating, an improvement over its prior B- standing. The shift follows a period of debt paydowns and sales growth for the firm.
The players
S&P Global
An international financial services firm that provides credit ratings and market intelligence to businesses.
Michaels Cos.
A national arts and crafts retailer that is currently owned by private equity firm Apollo Global Management Inc.
Apollo Global Management Inc.
A large-scale alternative asset manager that holds ownership of various retail and industrial entities.
The details
The upgrade follows a strategic focus by Michaels Cos. on debt reduction to strengthen its balance sheet. By prioritizing these paydowns alongside sales growth, the retailer successfully improved its credit profile as measured by S&P Global. This progression demonstrates the impact that sustained operational performance and focused capital management have on institutional credit assessments.
Timeline
September 28, 2026: S&P Global upgraded the company credit rating.
Market Landscape
This credit upgrade marks a shift in the financial trajectory of the business established following its 2020 private equity acquisition. It follows a broader trend of private equity-backed retailers focusing on balance sheet deleveraging to navigate volatile consumer demand.
Operators should review their debt-to-earnings ratios to ensure their capital structures support growth rather than hindering future borrowing capacity. Monitoring credit movements among major retail peers can provide valuable benchmarks for adjusting your own financial strategy.
The takeaway
Maintaining a focus on deleveraging creates a foundation for improved credit ratings, which can eventually lower the cost of capital. Keep a close watch on your firm's quarterly debt obligations against top-line growth to signal strength to your financial partners.
Further reading
For more on managing corporate balance sheets, visit Business Strategy.
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Do you trust that major retailers are managing their debt effectively to ensure long-term stability?
