Mohawk Industries Inc. 'A-2' Rating Unaffected By Commercial Paper Program Upsize To $1.8 Billion

NEW YORK (Standard&Poor's) June 1, 2015--Standard&Poor's Ratings Services said today that its 'A-2' short-term rating on Mohawk Industries Inc.'s commercial paper (CP) program is unchanged following an upsize to $1.8 billion. Mohawk intends to use the CP program, which is backed by its $1.8 billion revolving credit facility, for general corporate purposes. Under our baseline scenario for 2015 and assuming Mohawk's previously announced €1 billion acquisition of IVC closes in the second quarter of this year, we expect pro forma debt-to-EBITDA leverage (adjusted for lease and pension obligations) of about 2.5x, still well within our parameters for an "intermediate" financial risk assessment (debt leverage of 2x to 3x). Furthermore, as it has done with past acquisitions,

...(Editor's Note: In the article published earlier today, we misstated the debt amount in the headline. It is $1.8 billion. We've corrected the headline.) NEW YORK (Standard & Poor's) June 1, 2015--Standard & Poor's Ratings Services said today that its 'A-2' short-term rating on Mohawk Industries Inc.'s commercial paper (CP) program is unchanged following an upsize to $1.8 billion. Mohawk intends to use the CP program, which is backed by its $1.8 billion revolving credit facility, for general corporate purposes. Under our baseline scenario for 2015 and assuming Mohawk's previously announced 1 billion acquisition of IVC closes in the second quarter of this year, we expect pro forma debt-to-EBITDA leverage (adjusted for lease and pension obligations) of about 2.5x, still well within our parameters for an "intermediate" financial risk assessment (debt leverage of 2x to 3x). Furthermore, as it has done with past acquisitions, we expect Mohawk to use its substantial cash flow to reduce leverage...

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