NEW YORK (AP) -- Standard & Poor's Ratings Services on Friday lowered its credit ratings on Hasbro Inc. due to the toy maker's recent weak performance and the agency's forecast for flat growth this year.
Toy makers had a tough holiday season with weaker demand. The industry is facing a slowdown in developed markets such as the U.S. and Europe as mobile devices and electronics steal attention from toys and consumers hold back on spending due to the uncertain economy.
Hasbro said in January that its fourth-quarter revenue failed to meet expectations, and announced plans to cut 10 percent of its 5,500-employee workforce worldwide and consolidate facilities to curb expenses.
S&P lowered its corporate credit rating on the Pawtucket, R.I., company one notch from “BBB+” to “BBB,” two notches above junk status. The outlook is stable.
Hasbro shares closed Thursday up 27 cents at $43.94, not far off the stock's 52-week high of $44.14. Markets were closed Friday in observance of the Good Friday holiday.