S&P lowers AOT Bedding

Standard & Poor's said it lowered the corporate credit rating on AOT Bedding Holdings Corp. to B from B+.

The outlook is stable.

S&P said the downgrade is based on weaker-than-expected credit measures that are below expectations, due to housing market weakness and a difficult consumer spending environment.

The issuer's adjusted total debt-to-EBITDA ratio was 6.8 times for the 12 months ended March 31, down only slightly from 7.3 times for the previous year period.

Ratings reflect the company's narrow business focus, aggressive financial policy and highly leveraged financial profile, the agency said.

Somewhat mitigating these factors are the company's well-recognized brands, solid market position and the mattress industry's relatively stable demand and significant barriers to entry, S&P noted.

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