Nike falls after S&P cuts rating to A, negative outlook on 'protracted' turnaround

By Reuters News

** Shares of sportswear giant Nike NKE.N down ~3% at $32.83 in morning trading

** S&P Global downgrades stock rating to 'A' from 'A+', with 'negative outlook,' saying co's turnaround efforts will take more time and higher investments than previously expected

** Sees sharply lower revenue, profit, and cash flows over the next 24 months and continuing pressure in China; Says senior leadership and board changes could slow NKE

** Expects co's debt management to remain pressured and sees co burning about $1.2 billion of cash annually over the next two to three years

** Rating could be lowered further at any time in the next 12-24 months if Nike does not make progress towards stabilizing and turning the business around, S&P says

** Co's shares hit a near 13-year low on Friday after it forecast a steep drop in full-year revenue

** Up to last close, stock down about 49% YTD

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