Moody's reviews Ethan Allen

Moody's Investors Service said it placed Ethan Allen Global Inc.'s Baa3 senior unsecured rating on review for downgrade following the company's third quarter results.

The agency said it has concerns about the company's ability to return to previous levels of operating performance despite severe cost cutting measures.

Moody's noted the company has terminated its revolving credit facility and is likely to establish an asset-based revolving credit facility. The agency said it believes that Ethan Allen's current liquidity position is adequate despite the lack of a facility given the company's reasonable cash balances and no material debt maturities until 2015.

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