S&P: Estee Lauder outlook negative

Standard & Poor's said it revised its outlook on Estee Lauder Cos. Inc. to negative from stable and affirmed its ratings, including the A corporate credit rating.

The agency said the primary drivers of the outlook revision are the very difficult retail environment and the company's recent results for the fiscal quarter ended Dec. 31, which included a 12% decline in revenues and reflected a very challenging holiday quarter.

S&P said that while it expects Estee Lauder to sustain its strong market position and continue to generate good cash flows, the agency believes the company will be challenged to improve its credit measures to historical levels.

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