S&P cuts Raymours Furniture view to negative

Standard & Poor's said it revised its outlook on Raymours Furniture Co. Inc. to negative from stable.

The BB- corporate credit rating was affirmed.

S&P said the outlook revision is based on weak credit measures for the rating category and the agency's expectation that these will not materially improve over the near term because the company is expanding its store base more aggressively than previously anticipated.

The rating on Raymours Furniture reflects the company's participation in the cyclical and highly competitive furniture industry, as well as its regional concentration, small earnings base and modest financial flexibility, S&P said, adding these risks are partially offset by the company's established market position in the Northeast and its disciplined growth.

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