Mattel Short-Term Debt Approaches ‘Junk’ Level

Mattel Inc.’s short-term credit rating was cut to one level above “junk” status by Standard & Poor’s.

The rating was lowered to A3 from A2 because of Mattel’s “weakened” competitive position, S&P; said. The ratings company also revised its long-term rating outlook to negative from stable. El Segundo-based Mattel had total debt of $528 million as of Sept. 30.

Mattel said this week that third-quarter profit fell 12%.