Three Wall Street analysts cut their earnings forecasts for Tyson Foods and one downgraded the stock following larger-than-expected losses in its chicken segment, concerns about its debt status and news that Russia plans to cut chicken imports.

J.P. Morgan downgraded the stock rating to underweight from overweight, citing Russia's most recent move to cut chicken imports and the risk the firm may breach a covenant on its loans if it doesn't renegotiate a credit agreement.

In a teleconference yesterday following its fourth quarter earnings report, analysts questioned CEO Richard Bond and CFO Dennis Leatherby about concerns the company might need to seek a debt covenant waiver from its lenders. Both officials said they were confident its bankers would work with the company if it needed to adjust its loan covenants, a possibility neither would rule out.
J.P. Morgan cut its fiscal 2009 earnings forecast for Tyson to a loss of 12 cents per share from a previous forecast of a 42-cents-a-share profit, according to Dow Jones.

In a note to investors, BB&T Capital Markets said it cut its fiscal 2009 earnings forecast to 30 cents per share from an earlier forecast of 66 cents per share, citing a more negative outlook for chicken profitability through the first half of the year.

Stephens Inc. reduced its fiscal 2009 earnings forecast to 55 cents per share from 80 cents per share earlier, citing sluggish protein demand, which is pressuring profitability.

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