S&P: Lenox still on watch

Standard & Poor's said that its B+ corporate credit rating and other ratings for Lenox Group Inc. remain on CreditWatch with negative implications, where they initially were placed on Nov. 3, reflecting the company's announced weak third-quarter operating performance and its expectation that Lenox will be challenged to meet prior expectations.

The CreditWatch update follows the company's announcement that Susan E. Engel, chairwoman and chief executive officer, will step down from her role, the agency noted.

Lenox also announced that the company's fiscal 2006 results will be weaker than anticipated and that it is seeking a waiver to be in compliance with financial covenants, S&P said.

The ratings on Eden Lenox Group Inc. reflect its narrow business focus, declining channel sales and leveraged financial profile, the agency said.

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