Moody's reviews Leggett & Platt

Moody's Investors Service said it placed the A2 long-term rating and Prime-1 commercial paper rating for Leggett & Platt, Inc. on review for downgrade.

The action reflects concern that financial leverage will remain elevated due to deterioration in consumer spending, which comprises more than half of the company's product mix, according to the agency.

"The review for downgrade reflects our concerns that the deterioration in consumer spending is accelerating and expanding into previously strong markets such as Europe and Asia," Kevin Cassidy, senior credit officer at Moody's, said in a written statement.

The agency said it believes that Leggett's vertically integrated manufacturing processes provide them with a substantial competitive advantage.

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