Earnings
Moody's Lowers Rating On Some Ethan Allen Notes
The Associated Press
06/08/09 - 01:07 PM EDT
NEW YORK (AP) Moody's Investors Service lowered its rating on Ethan Allen Interiors Inc.'s senior unsecured notes Monday, citing the ongoing pullback in consumer spending and likelihood of a slow revenue recovery.
The ratings agency, which does not expect a meaningful revenue recovery over the next two years, lowered its rating on the notes to junk status with a "Ba1" rating. Previously, the notes had an investment grade rating of "Baa3."
Moody's also gave the home furnishings retailer a "Ba1" corporate family rating, a "Ba1" probability of default rating and an SGL 2 speculative grade liquidity rating.
The outlook is negative.
The company's stock fell 61 cents, or 4.6 percent, to $12.58 in afternoon trading as the broader market declined on softening commodity prices. The shares have traded in a 52-week range of $6.98 to $34.02.