Mannington Mills' recent operating performance and credit metrics have improved due to favorable luxury vinyl tile (LVT) plant performance, plant efficiency improvements, and incremental sales, resulting in better profit margins and reduced adjusted debt to EBITDA of 4.2x as of Dec. 31, 2016. We expect the company to operate at adjusted debt to EBITDA of about 4x and funds from operations to debt of 17% in the next 12 months. Therefore, we are revising the outlook on Mannington to stable from negative and affirming our 'BB-' corporate credit rating on the company. At the same time, we are affirming our 'BB-' issue-level rating on the company's term loan. The recovery rating on the term loan is unchanged at '3'. The
