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Mohawk Industries Inc. Outlook Revised To Positive From Stable; Affirms Ratings May 11 Product Image

Mohawk Industries Inc. Outlook Revised To Positive From Stable; Affirms Ratings May 11

  • ID: 1724190
  • May 2011
  • Standard & Poors

Abstract
U.S.-based carpet and floor covering maker Mohawk Industries Inc. used free operating cash flows to reduce adjusted debt by nearly 20% in 2010 and in the first quarter of 2011, improving adjusted leverage to about 2.75x from 3.9x a year earlier. We expect earnings and funds from operations to increase over the next two years because of recent cost reductions and improving market conditions. We are affirming our ratings on the company, including the 'BB+' corporate credit rating. We are revising the rating outlook to positive from stable based on our view that the company's financial risk profile may strengthen to a level consistent with a low investment-grade rating within the next year or so. NEW YORK (Standard & Poor's)...

Companies mentioned in this report are:
- Mohawk Industries Inc.

Action: Affirmed
Action: Outlook: Positive

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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