S&P warns about Furniture Brands credit

Standard & Poors Ratings Services has placed Furniture Brands International, parent company of Thomasville

Furniture, Broyhill and other major manufacturers, on its CreditWatch list with negative implications, the ratings agency announced.
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That means S&P could lower Furniture Brands (NYSE: FBN – News) corporate credit rating following a review. S&P could also maintain the company’s current “BBB-” rating, according to S&P credit analyst Ric Joy.
“The CreditWatch listing reflects our expectation of continued softness in the company’s furniture business given a challenging retail environment, as well as credit protection measures that our below our expectations for the ‘BBB-‘ rating,” Joy said.
Credit ratings reflect an independent analysis of a company’s likely ability to repay its debt obligations. In February another rating agency, Moody’, cut Furniture Brand’s debt to its lowest investment-grade rating, citing deterioration in the company’s margins and credit indicators.
Published March 1, 2017 by The Business Journal