Furniture Business News

Furniture Brands Removed From Watch List

August 14th, 2007

Furniture Brands International Removed From Standard & Poor’s Credit Watch List

WASHINGTON (AP) — Credit ratings agency Standard & Poor’s on Monday removed furniture manufacturer Furniture Brands International Inc. from a watch list, citing new financing arrangements.


S&P said it affirmed the “BB-” corporate credit rating for St. Louis-based Furniture Brands. The rating remains at junk-bond status, three notches below investment grade.

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The rating was put on S&P’s watch list with negative implications on Feb. 28 because of weak business trends and lower-than-expected credit protections.

Furniture Brands, which sells furniture under the Broyhill, Thomasville and Lane brands, earlier this month reported a 66 percent drop in second-quarter profit as the furniture industry slumped.

Standard & Poor’s credit analyst Rick Joy said in a statement that short term concerns about the company’s liquidity have been removed due to new financing.

S&P said its outlook was negative. The company’s outstanding debt was about $300.8 million as of June 30, S&P said.

Shares of Furniture Brands rose 14 cents to $12.18 in after-hours electronic trading after falling 26 cents to close at $12.04.

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