Moody's may lower Whirlpool

Moody's Investors Service said it placed Whirlpool's Baa2 long-term rating and P2 short rating on review for possible downgrade following's announcement that 2008 earnings and free cash flow will be significantly lower than previously expected.

"The review for possible downgrade reflects its concerns that the deepening housing market and credit market crises over the last month will accelerate the contraction in discretionary consumer spending in the fourth quarter and into next year," said Kevin Cassidy, Moody's senior credit officer.

While the agency said it believes that Whirlpool will continue to take appropriate and difficult steps to protect its credit metrics and liquidity, it expects the events over the last month will prolong the diminishing U.S. appliance demand as well as restricting international growth, which had previously provided a buffer against the U.S. contraction, and that the company's financial flexibility will be reduced.

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