S&P: Mannington Mills to negative

Standard & Poor's said it revised its outlook on Mannington Mills Inc. to negative from stable and affirmed its BB- corporate credit rating.

The issue-level ratings on the term loan remain BB-, with the recovery rating unchanged at 3, indicating an expectation for meaningful (50% to 70%, upper half of the range) recovery in the event of default.

"The negative outlook reflects weaker-than-expected operating performance and elevated leverage due to operational difficulties in 2015," S&P credit analyst Vania Dimova said in a news release.

"We expect the company to improve leverage measures to below 5x over the next 12 months as it increases sales and realizes cost benefits from the new LVT plant."

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