Research Update: Mannington Mills Inc. Ratings Affirmed On Expectation For Stable Operating Performance, Outlook Stable

We expect U.S. flooring manufacturer Mannington Mills Inc.'s operating performance will remain stable through the business cycle due its cost-control levers and growing luxury vinyl tile (LVT) segment, which will be offset by a decline in its legacy product sales (including vinyl, laminate, and wood). We expect the company to operate with S&P Global Ratings-adjusted debt to EBITDA of about 4x-5x and funds from operations (FFO) to debt in the mid- to high-teens percent range over the next 12 months. Therefore, we affirmed our 'BB-' issuer credit rating on the company and our 'BB-' issue-level rating on its term loan. Our '3' recovery rating on the term loan is unchanged. The stable outlook reflects our expectation that Mannington Mills will

...- We expect U.S. flooring manufacturer Mannington Mills Inc.'s operating performance will remain stable through the business cycle due its cost-control levers and growing luxury vinyl tile (LVT) segment, which will be offset by a decline in its legacy product sales (including vinyl, laminate, and wood). - We expect the company to operate with S&P Global Ratings-adjusted debt to EBITDA of about 4x-5x and funds from operations (FFO) to debt in the mid- to high-teens percent range over the next 12 months. - Therefore, we affirmed our '##-' issuer credit rating on the company and our '##-' issue-level rating on its term loan. Our '3' recovery rating on the term loan is unchanged. - The stable outlook reflects our expectation that Mannington Mills will continue to operate with leverage metrics we consider appropriate for the current rating....

Research Update