Moody's lowers rating on some Ethan Allen notes

Moody's Investors Service lowered its rating on Ethan Allen Interiors Inc.'s senior unsecured notes Monday, citing the ongoing pullback in consumer spending and likelihood of a slow revenue recovery.

The ratings agency, which does not expect a meaningful revenue recovery over the next two years, lowered its rating on the notes to junk status with a "Ba1" rating. Previously, the notes had an investment grade rating of "Baa3."

Moody's also gave the home furnishings retailer a "Ba1" corporate family rating, a "Ba1" probability of default rating and an SGL 2 speculative grade liquidity rating.

The outlook is negative.

The company's stock fell 61 cents, or 4.6 percent, to $12.58 in afternoon trading as the broader market declined on softening commodity prices. The shares have traded in a 52-week range of $6.98 to $34.02.