S&P lowers Renfro

Standard & Poor's said that it lowered its corporate credit rating on Renfro Corp. to B- from B, and removed all the issue-level ratings from Creditwatch, where it placed them with negative implications on Dec. 11 following Renfro's weak third-quarter operating performance and tighter-than-anticipated covenant cushion levels.

Although the company was able to meet its financial covenants as of fiscal year-ended Jan. 31, with adequate cushion, the agency said it remains concerned about the weak retail environment and its effect on the company's performance and ability to maintain sufficient cushion on its financial covenants for the fiscal year-ending January 2010.

Although the company was able to improve credit protection measures by the fiscal year ended Jan. 31, the agency said it believes the weak retail environment may hamper Renfro's near-term operating performance.

S&P added that it also lowered the rating on the company's $145 million senior secured term loan to B- from B and maintained the recovery rating of 4.

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