NEW YORK (Standard&Poor's) Sept. 24, 2008--Standard&Poor's Ratings Services said today that it revised its outlook on Renfro Corp. to negative from stable. At the same time, we affirmed all ratings on the company, including the 'B' long-term corporate credit rating. The Mount Airy, N.C-based sock manufacturer had about $169 million of balance sheet debt as of July 26, 2008. The outlook revision reflects our concerns about Renfro's weaker-than-expected operating performance and tight covenant cushion levels for the quarter-ended July 26, 2008. While net sales increased slightly and volumes were flat, EBITDA declined about 12% due to higher raw material costs, a less-favorable product mix, and overall weaker sales trends to retailers. Credit protection measures for the
