S&P: Simmons on watch

Standard & Poor's said it placed all of its ratings on Simmons Co. and subsidiary Simmons Bedding Co., including the B corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement means that the agency could lower or affirm the ratings following the completion of its review.

S&P noted that the CreditWatch listing reflects Simmons Bedding's very tight covenant cushion for the coming quarter ended Sept. 30, adding that it is also concerned that the cushion will remain tight as operating performance is unlikely to meaningfully improve in the near term, given the current weak economic environment and its expectation that demand for bedding in North America will remain constrained.

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