Moody's Reviewing Mohawk's Debt Rating

New York, NY, Nov. 10, 2008--Moody's Investors Service has placed Mohawk Industries Inc.'s long-term debt rating on review for possible downgrade, after Mohawk reported third-quarter earnings which fell short of Wall Street expectations.

Moody's said in a research note the Calhoun, Ga.-based company could come under similar pressure in 2009.

On Thursday, Mohawk recorded a loss for the quarter due to a massive impairment charge and issued fourth-quarter guidance far below Wall Street's forecast.

The ratings agency placed Mohawk's investment grade Baa3 debt rating on review due to growing concerns of a "rapid decline" in consumer spending as a result of crippled housing and credit markets.

Moody's Senior Credit Officer Kevin Cassidy, also noted that even if the economy begins to recover "consumers will be much more cautious in their willingness to borrow and in their general discretionary spending patterns for the foreseeable future."