S&P drops Sealy

Standard & Poor's said it lowered its corporate credit rating on Sealy Corp. to B+ from BB-.

At the same time, the agency said it lowered all of its existing issue-level ratings on the company by one notch.

The agency said it also removed all of the ratings from Creditwatch, where it had placed them with negative implications on Oct. 10, following the company's weak third-quarter results and its concerns about tight covenant cushion.

The outlook is negative.

According to S&P, the rating actions reflect Sealy's weakened operating performance and lower sales volumes from a challenging retail and residential housing environment, and corresponding weakening in credit measures.

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