S&P lowers Targus outlook to negative

Standard & Poor's said it revised its rating outlook on Targus Group International Inc. to negative from stable.

Ratings on the company, including the B corporate credit rating, were affirmed.

The agency said that the revised outlook reflects weaker-than-expected profitability and free cash flow resulting from challenging operating conditions, including an unfavorable working capital environment and higher commodity and fuel costs, in addition to a less favorable product mix - all of which have contributed to a decline in credit protection measures.

The B rating on the company reflects Targus' highly leveraged pro forma capital structure, according to S&P.

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