S&P lowers Applica

Standard & Poor's said it lowered its corporate credit rating on Applica Inc. to CCC- from B- and its subordinated debt rating on the company to CCC- from CCC.

In addition, all ratings on Applica were removed from CreditWatch with negative implications, where they were placed April 21. The outlook is negative.

The downgrades reflect S&P's concerns regarding Applica's continued weak operating performance and its tight liquidity position entering the second half of the year when the company's seasonal working capital needs typically reach their peak.

S&P added the ratings on Applica reflect its participation in the highly competitive small appliance industry, continued weak operating performance, highly leveraged financial profile and tight liquidity position.

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