S&P: Simmons Bedding unaffected

Standard & Poor's said Simmons Bedding Co.'s (B+/negative/--) announcement of lower earnings for the first quarter of 2005 does not affect the ratings or outlook on the company.

Profitability measures have weakened, reflecting lower margins resulting from intensified competition and higher raw material costs, according to S&P.

Still, S&P said Simmons has well-known consumer brands and is a leader in product innovation.

The rating agency said it expects Simmons to adjust its operating model and to maintain credit ratios appropriate for the current rating.

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