S&P cuts Brunswick rating amid weak environment
Brunswick (NYSE: BC) announced last week that it would cut 1,000 jobs and close plants due to a weak operating environment as consumers reduce discretionary spending. The company has now announced it might cut loose an additional 1,700 employees as it completes further cost-cutting initiatives.
The S&P lowered its long-term ratings on the company, cutting the corporate credit rating to "BBB-" (the lowest investment rating) from "BBB" (one notch above that).
S&P also put the ratings on CreditWatch negative. "The rating downgrade and CreditWatch placement reflect our concerns about the effects of Brunswick's operating outlook revision on credit quality and, more broadly, conditions in the recreational marine industry," said Standard & Poor's credit analyst Andy Liu in a statement.
Brunswick shares fell 65 cents, or 5.8 percent, to $10.60, after earlier reaching a low of $10.55. The last time the stock traded that low was 1991. The stock had traded between $11.01 and $33.62 during the past 52 weeks.
Hibbett Sports falls on downgrade
Hibbett Sports Inc. (Nasdaq: HIBB) shares fell on Monday, after an analyst said the stock is fairly valued and lowered his rating on the stock.
Since the beginning of the year, shares in Hibbett Sports have risen 11 percent.
Needham analyst Sean McGowan cut his rating on the stock to "Hold" from "Buy," due to the belief that "the current price fairly captures Hibbett's growth prospects, and that its recent price strength leaves the stock a bit more vulnerable to the vagaries of jittery consumer sentiment," he wrote in a note to investors on Monday.
A positive second-quarter earnings report is likely already reflected in the stock price, he said.
Shares fell $1.13, or 5.1 percent, to $21.12 Monday. The stock has traded between $12.30 and $30.62 during the past year.
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