Moody's downgrades Russell

Moody's Investors Service said it downgraded the debt ratings of Russell Corp., including the corporate family rating to B1 from Ba3, the senior secured debt rating to Ba3 from Ba2 and the senior unsecured debt rating to B2 from B1.

The outlook is stable.

According to Moody's, the rating action reflects the medium-term impact on Russell's financial position of lowered performance guidance for the seasonally important second half of this year, following an unexpectedly weak second quarter. The actions also reflect potentially longer-term margin pressure as a result of increased production and distribution costs, a more competitive pricing environment, and lower sales volume to Wal-Mart in 2006.

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