U.S.-based flooring products manufacturer and distributor Mannington Mills Inc. posted weaker-than-expected EBITDA and earnings in 2015 due to operating inefficiencies at its new luxury vinyl tile (LVT) plant in Madison, Ga., as well as to unfavorable foreign currency headwinds. We expect leverage measures will remain elevated in 2016 before improving below 5x by 2017 as its new plant reaches peak efficiency. We are revising the rating outlook on Mannington to negative from stable. At the same time, we are affirming our 'BB-' corporate credit rating on the company. Our issue-level rating on the company's term loan remains 'BB-', with the recovery rating unchanged at '3'. The outlook revision reflects the current weak leverage measures and the risk of a downgrade
