Moody's snips Mannington Mills

Moody's Investors Service said it downgraded Mannington Mills, Inc.’s ratings, including the senior secured term loan B rating to B3 from B1, the corporate family rating to B2 from B1 and the probability of default rating to B2-PD from B1-PD.

The lower term loan rating reflects the weakened recovery for this class of debt, which now comprises a lower share of the overall capital structure compared to 2019 when the loan was initially rated, the agency said.

"The downgrade of the CFR reflects the decline in residential volumes as consumers cut back on discretionary spending in the home, resulting in continued downward pressure on Mannington Mills' top line," stated Griselda Bisono, a Moody's vice president and senior analyst, in a press release.

"Although we expect some improvement in profitability over the next year as previous headwinds, including raw material inflation and higher than normal freight costs have abated, the company's credit metrics will remain weak relative to B1 rated peers. In particular, interest coverage is expected to remain below 2x through 2024 due to a combination of low earnings and higher interest cost due to the company's variable rate debt structure," Bisono added.

The outlook remains stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.