Furniture Today,
NEW YORK — Moody’s Investors Service has placed Furniture Brands International ’s debt rating under review

for another possible downgrade, citing the company’s recent disclosure that it likely won’t be in compliance with certain financial covenants as of March 31.

Last month, Moody’s downgraded Furniture Brands’ debt rating to below investment grade (Ba1), “based on deterioration in the company’s margins and credit metrics over the past two years and continuing challenges in addressing weakness in its Broyhill brand,” Moody’s said in a statement.

“Although the company is in process of negotiating to amend the facilities to include less restrictive covenants, the negotiations could result in economic concessions to the lending groups including increased costs, reduction in the size of the revolver or other modifications in the terms and condition of the agreements, said Moody’s Vice President and Senior Analyst Kevin Cassidy.

The review involves Furniture Brands $400 million guaranteed revolving credit facility due 2017.