S&P: Russell unaffected

Standard & Poor's said there would not be an immediate effect on the ratings and outlook on Russell Corp. (B+/stable) as a result of the company's downward earnings revision.

The agency noted Russell revised earnings for the third time this year as a result of weaker-than-expected retail sales and higher expenses stemming from its earlier supply issues caused by Hurricane Katrina.

While this news is certainly not very encouraging, these issues were already factored into S&P's downgrade on Sept. 21 and the agency added it expects Russell to be challenged in revitalizing its core fleece business and in improving its financial measures during fiscal 2006.

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