S&P: Spectrum Brands unchanged

Standard & Poor's said its ratings and outlook on Spectrum Brands Inc. (B-/negative) will not be immediately affected following the company's announcement that its full year 2006 earnings will be substantially lower than its previous guidance provided in May 2006 and that it has engaged Goldman Sachs and Co. as financial advisor to evaluate potential selective asset sales.

The revised guidance represents the fourth negative revision over the past 12 months and continues to reflect the company's significant operating challenges, the agency noted.

While Spectrum Brands is expected to remain in compliance with its financial covenants for the third quarter of fiscal 2006, its operations continue to be affected by a weak European consumer battery business and inventory reductions by key retailers, S&P said.

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