S&P cuts Vitamin Shoppe

Standard & Poor's said it lowered the ratings, including its corporate credit rating, on Vitamin Shoppe Industries Inc. to B from B+.

The outlook is stable.

The agency said that the rating action reflects the company's failure to reduce leverage to levels consistent with the B+ rating, leverage for fiscal 2006 remained above 6x and cash flow protection measures were weak.

Rating factors include Vitamin Shoppe's small size in the highly competitive and fragmented retail vitamin industry, its narrow product focus, its high leverage and the risks associated with its rapid store expansion, S&P said.

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