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S&P: Easton-Bell view negative
Standard & Poor's said it revised its rating outlook on Easton-Bell Sports Inc. to negative from stable.
At the same time, the agency affirmed the B corporate credit rating on Easton-Bell and the B- issue-level rating on the company's $350 million senior secured notes due 2016. The 5 recovery rating on the notes indicates an expectation for modest (10% to 30%) recovery in the event of payment default.
"The outlook revision to negative reflects our belief that continued weak operating performance could persist, which could constrain liquidity," S&P credit analyst Stephanie Harter said in a news release.
"While the company may avoid further margin erosion as a result of new executive management's cost savings initiatives and supply chain improvement programs already in place, we expect net revenues to continue to decline."
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