S&P: Herman Miller view stable

Standard & Poor's said it revised the outlook on Herman Miller Inc. to stable from positive and affirmed the BBB corporate credit rating.

S&P said the revised outlook is based on the company's more aggressive financial policy reflected in its increased share repurchase plans and possible moderation in the U.S. office furniture market.

Ratings reflect the company's market position, variable cost structure, solid financial condition and continued improvements in operating performance, the agency said.

These factors are somewhat offset by the competitive and cyclical nature of the office furniture industry and the company's sensitivity to raw material prices, S&P said.

Pro forma for the $200 million of new senior unsecured notes, S&P said it estimates the issuer's total debt-to-EBITDA ratio will grow to 1.8 times from about 1 times for the 12 months ended Sept. 1.

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