S&P downgrades Russell

Standard & Poor's said it lowered its ratings on Russell Corp., including its corporate credit rating to BB- from BB and senior unsecured debt to B+ from BB-. The B+ unsecured debt is rated one notch below the corporate credit rating, reflecting its junior position in the capital structure relative to the secured bank debt.

At the same time, the ratings were removed from CreditWatch. The outlook is stable.

S&P said the downgrade follows S&P's review of Russell and reflects the company's continued downward trend in operating margins and credit protection measures for the fiscal year ended Jan. 1, 2005 and incorporates the uncertainty as to when credit measures will recover to historical levels. The rating actions also incorporate the company's more aggressive acquisition strategy and related integration risk.

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