Armstrong's Plan for Dividend Hits Credit Rating

New York, NY, Nov. 12, 2010 -- Standard & Poor's Rating Services lowered its credit rating on Armstrong World Industries due to the company's plan to pay a special cash dividend.

Moody's Investor Service put Armstrong's credit ratings under review last week, also citing the dividend.

The $800 million dividend payment depends on the company's ability to secure financing.

S&P said the ratings downgrade reflects the "significant increase in debt, as well as a more aggressive financial policy."

S&P lowered Armstrong's rating by one notch to BB-, and the outlook is negative, meaning future downgrades are possible.