S&P: True Temper on watch

Standard & Poor's said it placed its ratings for True Temper Sports Inc., including the B corporate credit rating, on CreditWatch with negative implications.

The agency said that the CreditWatch placement follows the company's weaker-than-expected operating performance, which has weakened credit measures to levels below its expectations.

Through the first nine months of 2006, sales have declined by about 7.1%, the agency noted, adding that operating margins continue to be pressured by higher energy-related and raw material costs, as well as a less favorable product mix, primarily attributed to lower sales volumes of the company's premium steel golf shafts.

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