Moody's Downgrades Mohawk Senior Unsecured Debt

New York, NY, Sept. 15, 2009--Moody's Investors Service on Monday downgraded Mohawk Industries Inc.'s senior unsecured notes rating, after the floor covering maker entered into a $600 million secured ABL revolving credit facility.

Moody's lowered Mohawk's non-investment grade rating of its senior unsecured notes to 'Ba2' from 'Ba1.' The ratings agency affirmed all other existing ratings, and kept the company's outlook as negative.

Moody's said the downgrade of the unsecured notes resulted after the company replaced its two unsecured revolving credit facilities with a new 4-year Asset Based Lending revolver. The new facility has security on the company's most liquid assets: inventory and accounts receivable.