On Sept. 24, 2008, Standard&Poor's Ratings Services 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 quarter ended July 26, 2008 were weaker
