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Moody’s considers downgrading Brunswick ratings
Moody’s Investors Service has placed Brunswick Corp.’s (NYSE: BC) ratings on review for possible downgrade as a drop in the U.S. marine market has forced the recreational boat maker to cut jobs and close plants. Brunswick is also the parent company of Life Fitness, Parabody and Hammer Strength.
The affected ratings are Brunswick’s investment-grade “Baa2” long-term rating and “Prime-2” commercial paper rating.
Moody’s noted the decline in U.S. retail demand for boats is expected to get worse in the second quarter, which is typically the company’s strongest period. Moody’s added that its ratings review would focus on the medium-term outlook for Brunswick’s profitability and cash flow generation.
Brunswick said it is shuttering plants and may eliminate more than 4,000 jobs to weather the economic downturn, hopefully reducing costs by $300 million this year.
Cybex gets credit line with RBS
Cybex International (Nasdaq: CYBI) entered into a credit agreement with RBS Citizens National Association for a revolving line of credit of up to $15 million.
Advances under the facility will bear interest at a floating rate equal to LIBOR plus 1.5 percent or the prime rate minus 1 percent. The revolving line of credit is available to July 1, 2011, and is secured by Cybex’s accounts receivable and inventory.
Upon entering this new agreement, Cybex terminated its former financing agreement with The CIT Group/Business Credit, which had provided Cybex with a working capital revolving loan facility of up to $14 million.
Under Armour names Lands’ End exec as president
Under Armour (NYSE: UA) said David McCreight has been named president and will be responsible for long-term growth strategy development. The company’s current president, Kevin Plank, will continue as CEO and chairman.
McCreight will report to Plank when he takes on his new post in September.
McCreight was formerly with Lands’ End, joining in 2003, then became president of the Sears Holdings subsidiary two years later. Sears said it is starting a formal search to find a replacement.
Collective Brands names new board member
Collective Brands (NYSE: PSS), parent of Saucony and Hind, said it named Matthew Ouimet to its board of directors.
Ouimet’s term expires in 2011. With his appointment, the Collective Brands board now consists of 10 directors, including nine independent directors.
Ouimet is president of the hotel group for Starwood Hotels and Resorts Worldwide and previously spent 17 years at Walt Disney Co.
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