Good market position in both residential and commercial flooring markets Limited size relative to peers Balanced product distribution and diverse product set Average profitability for the industry Debt to EBITDA of 3.5x to 4x projected for 2015 Funds from operations (FFO) to debt on the weak end for the rating Favorable debt maturity profile Ample interest coverage, on the high end for the rating The stable outlook reflects Standard&Poor's Ratings Services' expectation that U.S.-based flooring manufacturer Mannington Mills Inc. will improve EBITDA margins--which we currently view as average--as the company expands its manufacturing capacity in the U.S. and shifts its product mix toward higher margin luxury vinyl tile. This should enable the company to maintain leverage near 3.5x
