S&P cuts C&A Floorcoverings

Standard & Poor's said it lowered its corporate credit rating on Collins & Aikman Floorcoverings Inc. to B+ from BB- and lowered its subordinated debt rating on the company to B- from B.

The downgrade, which follows S&P's review of the company, reflects Collins & Aikman Floorcoverings' declining revenues and margins and its deteriorating credit protection measures.

The bank loan rating on the company was also lowered to B+ from BB- and assigned a recovery rating of 4.

The outlook is stable.

S&P said the ratings on Collins & Aikman Floorcoverings reflect its leveraged financial position and its participation in the highly competitive and cyclical carpet industry. These factors are offset by the firm's solid niche market position in the domestic commercial carpet market and by its diversified customer base.

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