S&P drops Russell

Standard & Poor's said it lowered its ratings on Russell Corp., including its corporate credit rating to B+ from BB-.

At the same time, the ratings were removed from CreditWatch with negative implications, the agency said.

The outlook is stable.

The downgrade follows the company's second downward earnings revisions in the past several months, this time due to the negative impact of Hurricane Katrina, the delay in implementation of CAFTA and lingering effects of the operational issues the company faced in the second quarter ended July 2, related to higher-than-expected demand for hooded fleece product, S&P noted.

The agency added the ratings on Russell reflect its participation in the highly competitive and volatile apparel industry, the company's narrow product focus and the commodity-like nature of some products.

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