S&P: Levitz unaffected

Standard & Poor's said the announcement by Levitz Home Furnishings Inc. (CCC/negative/--) that it has secured a $20 million equity investment from its majority equity owner and an additional $20 million in borrowing capacity under its existing credit facility has no immediate impact on the rating or outlook for the company.

Although the added liquidity provides a transitional period to pursue a revitalization plan, the company has experienced a sharp decline in profitability and must demonstrate an improvement in operating performance before a rating action can be considered, the agency said.

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