S&P Lowers FBI Credit Rating

August 8, 2006  by in UnCategorized   

By Home Furnishings Business in on August 2006 Standard & Poor’s announced yesterday that it had lowered Furniture Brands International’s credit rating from BBB to BBB-minus.

In a release, S&P said FBI’s performance was weaker than expected, citing decreased pre-tax earnings, depreciation and amortization, increasing costs for raw materials, and weak sales in the key mid-price range for furniture.

While net income through the second quarter of 2006 is more than a third ahead of last year, FBI’s sales were only slightly ahead of the prior year.