Standard & Poor's on Friday placed some of its Nike
debt ratings on its Creditwatch list with "negative
implications," according to Jeff Manning of the Portland
OREGONIAN. S&P's rates Nike's corporate credit and senior
unsecured debt single A-plus, "but it is placing that rating
on its watch list, based on an expectation that Nike's
results will continue to be weaker than previously expected
because of 'ongoing softness in the U.S. athletic footwear
and apparel markets.'" Nike's total debt outstanding as of
May 31 was $860M. Analyst Jennifer Black "minimized" S&P's
report, noting that Nike's debt "remains investment grade."
Nike was unavailable for comment (Portland OREGONIAN, 7/11).
FILA EXPECTS SECOND QUARTER DROP: CNBC's Joe Kernan
reported that Fila expects to report "a second-quarter loss
of $1.48." Fila said that "weaker sales in the U.S. and Far
East, strong pressure on margins due to higher level of
closeouts and lower royalty income from its Japanese license
contributed to lower expectations" ("The Edge," CNBC, 7/10).
