Moody's may lower Oreck

Moody's Investors Service said it placed the B1 corporate family and secured debt ratings of Oreck Corp. on review for possible downgrade pending further information about the company's near-term financial and operating position following Hurricane Katrina's passage.

Oreck's headquarters and single production facility are both in areas heavily affected by the hurricane. Oreck's liquidity reserves at the end of June were sufficient to finance normal operations, but might not stretch to finance prolonged disruption to their operations. Its ability to supply inventory to retail or direct channels over the near term is unknown.

Moody's said the review will focus on Oreck's ability to finance its operating needs, the longer term costs of rebuilding, and on the effect which the hurricane could have on its near- to medium-term operations and financial profile.

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