S&P Downgrades Ratings on Mohawk

New York, NY, October 10, 2005-- Standard & Poor's Ratings Services on Friday lowered its corporate credit rating and unsecured debt ratings on Mohawk Industries Inc. to BBB- from BBB+. The ratings on the Calhoun, Georgia-based carpet and floor coverings company were removed from creditwatch with negative implications, where they were placed on July 5. The outlook is stable. "The downgrade reflects Mohawk's more aggressive financial policy with the proposed all-debt financed acquisition of Unilin," said Susan Ding, an S&P credit analyst, in a statement. Rising raw material, energy, and transportation costs are also concerns, the agency said. Additionally, Mohawk revised its earnings for the third and fourth quarters downward, as a result of the impact of the recent hurricanes on natural gas and petroleum-based derivative product costs, S&P said.

Related Topics:Mohawk Industries, Coverings

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