S&P: Kellwood unaffected

Standard & Poor's said Friday that the ratings and outlook on Kellwood Co. (BBB-/stable/--) would not be immediately affected by its downward guidance revision.

The company revised its guidance based on weaker-than-expected fall shipments and spring 2005 bookings. Fall merchandise sell-through was lower due to weaker consumer demand, the inclement weather in September, and higher energy and fuel costs. However, Kellwood anticipates sales from its new initiatives will drive sales growth in the fourth quarter, although the sales levels will be slightly lower than the company's original expectations.

Nevertheless, S&P said it expects Kellwood to continue generating significant free cash flow and maintain credit protection measures commensurate with its ratings.

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