Moody's Lowers Rating On Sotheby's

NEW YORK (AP) — Moody's Investors Service on Wednesday lowered its rating on Sotheby's one step further into junk status with the expectation that a downturn in the auction market will be deeper and longer than anticipated.

Moody's downgraded its long-term rating to Ba3 from Ba2. The rating outlook is stable.

The rating agency said the current cyclical downturn in the auction market could continue for some time and hurt Sotheby's operating performance and credit metrics into 2011.

However, the company's good liquidity, strong market and balanced financial policies indicate it will "successfully weather" the current downturn, Maggie Taylor, vice president and senior credit officer for Moody's wrote.