S&P cuts Briggs & Stratton to junk

Standard & Poor's said it lowered its corporate credit and senior unsecured ratings for Briggs & Stratton Corp. to BB+ from BBB-.

The ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 20, due to weaker-than-expected operating performance and credit protection measures that are below S&P's expectations for the BBB- rating.

The outlook is stable.

The agency added that the downgrade reflects Briggs & Stratton's weakened financial performance, growing price pressure as lower cost offshore manufacturers begin penetrating the mass merchant segment of the market and credit measures that continue to remain below its expectations for a BBB- credit.

S&P said that the ratings on Briggs & Stratton reflect the mature and competitive nature of the company's end markets and the high degree of seasonality in its businesses, which are susceptible to adverse weather conditions, noting that these factors are somewhat offset by the company's strong market position as a leading producer of air-cooled gasoline engines and engine-powered outdoor equipment, in addition to its broad product portfolio.

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