S&P cuts Collins & Aikman Floorcoverings view to negative

Standard & Poor's said it revised its outlook on carpet manufacturer Collins & Aikman Floorcoverings Inc. to negative from stable.

At the same time, S&P said it affirmed its ratings on the company, including its B+ corporate credit rating. Other ratings affirmed include secured debt at B+ and subordinated debt at B-.

The outlook revision reflects S&P's expectation that the company will continue to face significant margin pressures, limiting its financial cushion within the rating category.

The ratings on Dalton, Ga.-based Collins & Aikman Floorcoverings reflect its highly leveraged financial profile and its participation in the intensely competitive and cyclical carpet industry, S&P said.

The ratings also incorporate the firm's niche market position in the domestic commercial carpet market and its diversified customer base, S&P said.

S&P said the negative outlook is indicative of firm's very challenging operating environment and negative trend in credit measures.

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