The New Murphy's Law: What can go right will go right

S&P cuts Kingfisher's debt rating to "BBB"
Tue Dec 13, 2005 1:08 PM ET


NEW YORK, Dec 13 (Reuters) - Standard & Poor's on Tuesday cut its ratings on U.K.-based home improvement retailer Kingfisher PLC (KGF.L: Quote, Profile, Research), citing expectations that the company is unlikely to reverse falling profits in its core U.K market.

Kingfisher's profit decline is expected to continue as weak indicators in the U.K., including consumer spending and confidence, house price inflation and housing transaction volumes, are expected to remain weak for a large part of fiscal 2007, S&P said in a release.

S&P lowered Kingfisher's long-term corporate credit and senior unsecured debt ratings one notch to "BBB," the second lowest investment grade ranking, from "BBB-plus." The outlook is stable.