Mohawk Industries Inc.'s US$500 Million Senior Unsecured Notes Rated ' BBB+'

CENTENNIAL (S&P Global Ratings) May 7, 2020--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Georgia-based Mohawk Industries Inc.'s (MHK) proposed $500 million senior unsecured notes due 2030. The company will use proceeds to redeem the $500 million outstanding under its senior term credit facility, and for general corporate purposes. We expect reduced remodeling spending and homebuilding activity over the next one to two quarters. This will likely reduce Mohawk Industries' revenue and EBITDA generation. However, assuming end markets begin to recover by the end of 2020, we expect debt leverage to potentially increase only to the mid-2x area on a trailing-12 month basis before recovering to below 2x during 2021. Mohawk Industries has entered this recession with healthy

...May 7, 2020 CENTENNIAL (S&P Global Ratings) May 7, 2020--S&P Global Ratings today assigned its '###+' issue-level rating to Georgia-based Mohawk Industries Inc.'s (MHK) proposed $500 million senior unsecured notes due 2030. The company will use proceeds to redeem the $500 million outstanding under its senior term credit facility, and for general corporate purposes. We expect reduced remodeling spending and homebuilding activity over the next one to two quarters. This will likely reduce Mohawk Industries' revenue and EBITDA generation. However, assuming end markets begin to recover by the end of 2020, we expect debt leverage to potentially increase only to the mid-2x area on a trailing-12 month basis before recovering to below 2x during 2021. Mohawk Industries has entered this recession with healthy leverage metrics and strong liquidity. We expect debt leverage at only 1.8x on Dec. 31, 2019, with approximately $300 million of EBITDA in the first quarter of 2020. MHK has cushion in its credit...

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