S&P puts American Safety Razor on watch

Standard & Poor's said it placed all of the ratings on American Safety Razor Co., including its B corporate credit rating, on CreditWatch with negative implications based on the company's weak operating performance through the first nine months of fiscal 2008. Sales have increased 3.4% during this period, but higher production and distribution costs related to manufacturing initiatives and currency losses have negatively affected EBITDA.

The agency said the review is also based on covenant steps-downs in the fourth quarter of fiscal 2008 and in the second and fourth quarters of fiscal 2009.

S&P will review ASR's operating performance and liquidity in light of the weak economy to assess its ability to stabilize its operations, generate positive free cash flow and restore an adequate cushion under its financial covenants.

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