S&P cuts Radio outlook to negative

Standard & Poor's said it revised its outlook on Radio Systems Corp. to negative from stable.

At the same time, S&P said it affirmed all of its ratings on the company, including its B corporate credit rating.

The outlook revision reflects the company's very limited cushion under its bank financial covenants, S&P said, adding that credit metrics remain stronger than the medians for the B rating category, yet the expected EBITDA cushion under the company's leverage ratio for the June 30 measurement date is very limited.

S&P noted that the ratings on Radio Systems reflect its exposure to technology risk, overall narrow product focus, a highly competitive operating environment, moderate customer concentration with the company's key retailers and some vulnerability to weak economic and retail environments.

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