Standard & Poors lowered the corporate credit rating of Furniture Brands International from BBB to BBB-minus, just one step above


junk status, and said the company’s outlook remained negative.

The St. Louis-based Furniture Brands (NYSE: FBI – News) is the parent of companies including Thomasville, Henredon, Broyhill and others. Furniture Brands reported profits up 77 percent in the second quarter of this year, but revenues up only 1.3 percent.

S&P analyst David Kang said the performance was weaker than expected and noted decreasing earnings before income taxes, depreciation and amortization as well as raw materials costs, debt levels and weak sales in mid-priced brands as factors in the credit rating cut.

Published August 8, 2013 by The Business Journal