Mohawk Industries Inc.'s Euro-Denominated Senior Notes Rated 'BBB'

NEW YORK (Standard&Poor's) June 2, 2015--Standard&Poor's Ratings Services today assigned its 'BBB' issue-level rating to Mohawk Industries Inc.'s proposed euro-denominated senior notes. The company will use the note proceeds to partially fund its acquisition of Belgium-based vinyl tile manufacturer IVC Group. Under our baseline scenario for 2015 and assuming the transaction 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" (as defined in our criteria) 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

...NEW YORK (Standard & Poor's) June 2, 2015--Standard & Poor's Ratings Services today assigned its '###' issue-level rating to Mohawk Industries Inc.'s proposed euro-denominated senior notes. The company will use the note proceeds to partially fund its acquisition of Belgium-based vinyl tile manufacturer IVC Group. Under our baseline scenario for 2015 and assuming the transaction 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" (as defined in our criteria) 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 to 2x or below by the end of 2016. Mohawk also recently enhanced its current liquidity by increasing the size of its $1 billion revolving credit facility to $1.8 billion. The '###' corporate credit rating on Mohawk...

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