Recessionary pressures have slowed the pace of flooring materials sales for U.S.-based Mannington Mills Inc., likely resulting in lower revenue and earnings in 2020. S&P Global Ratings is revising its outlook on Mannington to negative from stable and affirming the 'BB-' issuer credit rating. We are also affirming the rating on its term loan B at 'BB-'. The negative outlook indicates our view that leverage could reach 5x and EBITDA interest coverage could fall below 3x, if weakness in demand from residential and commercial end markets persists for an extended period, perhaps stemming from the U.S. economy not improving in line with our current expectations. The outlook revision to negative on Mannington is based on our expectation for weaker credit
