S&P cuts Leggett & Platt

Standard & Poor's said it lowered Leggett & Platt Inc.'s corporate credit rating to BBB+ from A-.

The outlook is stable.

"The downgrade reflects our expectation for a period of relatively slow demand improvement in Leggett & Platt's main markets, and our view that this could constrain the company's capacity to engage in its stated growth and shareholder return objectives at the prior rating," S&P analyst Gregoire Buet said in a statement.

Ratings reflect Leggett & Platt's business risk profile, which is satisfactory, marked by its leading position in bedding, furnishing, fixture and industrial markets, the agency said.

This is somewhat tempered by our expectations for a slow growth outlook in these markets over the next two years as well as the view that the company could spend slightly more than its discretionary cash flow to achieve its growth and shareholder return objectives, the agency noted.

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