BURLINGTON’S PROFIT WARNING FOLLOWED BY S&P DOWNGRADE
NEW YORK — A day after Burlington Industries Inc. warned that it would miss Wall Street’s earnings estimates for the current quarter because of a weak denim market, Standard & Poor’s lowered its ratings on the mill.
The agency on Thursday changed its corporate credit and senior unsecured debt ratings on the company to double-B plus, from triple-B minus. It also lowered the firm’s preliminary shelf debt rating to preliminary double-B plus from preliminary triple-B minus.
All the ratings were placed on credit watch, with “negative implications.”
On Wednesday, as reported, Burlington said that it expects to miss analysts’ consensus estimates for the fourth quarter ending Oct. 2 by 25 to 35 percent. Wall Street had been looking for 19 cents a share. A year earlier, Burlington earned 28 cents a share with net income of $16.7 million.