We are concerned about weak covenant cushion. The retail environment remains weak. We are lowering our rating on Renfro Corp. to 'B-' from 'B'. Our negative outlook on the rating reflects our concern about the company's ability to maintain adequate cushion on its financial covenants. On May 18, 2009, Standard&Poor's Ratings Services said that it lowered its corporate credit rating on Mount Airy, N.C.-based Renfro Corp. to 'B-' from 'B', and removed all of the issue-level ratings from CreditWatch, where we placed them with negative implications on Dec. 11, 2008 following Renfro's weak third-quarter operating performance and tighter-than-anticipated covenant cushion levels. Although the company was able to meet its financial covenants as of fiscal year-ended Jan. 31, 2009,
