S&P lowers Fleetwood, convertibles

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

The outlook is negative.

At the same time, the rating assigned to the company's convertible senior subordinated debentures is lowered to B- from B, S&P said, adding the rating assigned to Fleetwood Capital Trust's convertible trust preferred securities remains D.

The actions were prompted by significant losses from continuing operations in fiscal year 2005, S&P said.

Specifically, operating losses within the company's recreational vehicle group were high in the latter half of the fiscal year and contributed to material erosion in shareholder equity and cash reserves, the agency said.

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