If you want to add a small hanging ring, draw up a couple of Filled circles, center the smaller one over the larger one, and subtract out the center in order to create a ring shaped Compound Path. Use the Minus Front function in the Pathfinder palette.
Great write up. I tend to also add a border, and sometimes a score outline when I make keychains. The main graphic, or the name in this case is engraved, score line for emphasis, and a bit of a space for the border and loop hole. The same process that Jules listed above can be used to add these additional elements, just change the color. Sometimes, with a thin or very detailed font, the extra width or this border give your final cutout more “joined” material if that makes any sense. Merge and offset path are your best friends in Illustrator!
I made a Dad keychain using the steps here! Quite happy with the results. I am going to slow down the score a little bit because the lines aren’t perfect, but I think I’m just about there. Thanks again.