Morningstar Rates Mohawk Credit

New York, NY, July 20, 2010--Morningstar said it is initiating credit coverage of Mohawk Industries with an issuer rating of BBB-.

The company said noted Mohawk's modest size, its concentrated product portfolio, and the cyclical nature of the industry, including exposure to new construction.

Morningstar said Mohawk has some significant debt maturities to address.

Morningstar also noted that Mohawk had cash flow of more than $700 million in a difficult 2009 but forecasts about $250 million of free cash flow this year. It also said that Mohawk faces risks such as a weaker-than-expected recovery in end markets as well as commodity input costs.